One of our clients asked recently, “Can I get business insurance against Hackers?”
Oh, how times have changed! Once we only had to worry about the hooded man coming in through our bedroom windows to steal our grandmother’s jewellery or the big TV. With today’s sophisticated malware that little “blue cable” that connects us to the great world-wide web is as inviting to some as leaving the bedroom window open.
So why can’t we insure against cyber-attacks? Well, the short answer is we can, though beware.
The cyber-division is the new kid on the block of the insurance industry and where companies are more likely to call in the police after a fire or physical theft, they are not willing to tarnish their reputation when it comes to a breach in security such as virtual ransom, malware attack or a data leak.
According to Symantec, 85% of companies chose not to report or reveal breaches they had experienced.
Therefore, the industry is struggling to gather enough information to accurately predict the potential risks, in order to set their rates and premiums.
4 out of 5 Australian organisations will suffer a data breach that directly impacts on revenue in 2016, says Insurance Business Online.
Without access to crucial data, the insurance sector is playing it cautious, leaving the cost of cyber-insurance prohibitive to many small companies. So the question remains, how long will it be before we see this clause written in our standard insurance coverage?
How is your business protected from these cyber-attacks?
Talk to TCT about how we can assist in minimising your risk.
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