Cyber threats are growing all the time and becoming increasingly sophisticated. Industry reports show that by 2021, cyber-crime could cost the world as much as US$6 trillion annually.
Any business that uses the internet is vulnerable to cyber threats. These include cloud ransomware, AI hacking, cryptomining malware, email phishing, employee errors in handling data, and technical faults or malfunctions.
The consequences include lost or corrupted data, identity theft, monetary theft, privacy breaches, lawsuits, business interruption, and damage to reputation or customer relationships.
How prepared are business owners?
The term ‘cyber threats’ sounds ominous, like something relating to huge corporations or government. However, small-to-medium enterprises (SMEs) are very vulnerable to losses from cyber events and attacks, and it appears many business owners might not be fully aware of these.
In 2018, Chubb surveyed 400 SMEs across a range of industries about cyber risks. 60% of businesses surveyed thought they were in a better position than larger corporations when it comes to overcoming cyber incidents. In addition, 87% thought they could overcome a cyber attack quite quickly.
The research also showed that SMEs are not very well-prepared for cyber events. For example, 67% of owners believed they were not aware of all the potential threats out there, and 45% were not confident employees were aware of their responsibilities in handling data.
However, there are a range of measures you can take to help shield your business from cyber events and threats.
Protecting your business from cyber threats
Here are seven risk management tips, including:
- Tight password systems and security.
- Employee training on data handling responsibilities and recognising cyber risks.
- Regular backups of data to an external device.
- Regular and ongoing monitoring of IT security systems.
- Strong privacy policies for storing (and removing) sensitive information.
- Installing and running anti-spyware and antivirus software.
- Development of disaster recovery and business continuity plans, including a cyber insurance policy.
Why specialist cyber insurance is necessary
Even with the best risk management, things can still go wrong, and this is why specialised cyber insurance is so essential.
Traditional insurance products such as general liability, property and crime cover are generally inadequate for covering cyber exposures.
Specialist cyber insurance provides financial protection for consequences of cyber attacks and events – such as data theft or corruption, third-party liability, business interruption and recovery costs.
To find out more about how a specialised cyber insurance policy can help protect your business, contact us at Reliance Partners. Our partners take the time needed to understand you and your business, so they can help you find the best policies for your financial protection. Our services also include a 24/7 fast claims process.