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IT Security
October 26, 2021
Does my business need Cyber Liability Insurance?
By Dan B
Itfr Blog Cyber Insurance 01

Cyber security is no longer optional in today’s tech-centered world. The global pandemic has given cyber criminals an opportunity to exploit the demand for digital accessibility of information and data. With more employees working from home due to the current economic climate, access to networks has never been easier for hackers.

At ITFR we are devoted to providing the latest and most robust cyber-security solutions in the industry from world’s leading vendors. Our “layered” security approach not only aims to protect your infrastructure, but to allow your business to return to operations as soon as possible in an event of an attack. Due to the sophistication of cybercrime, there is no technology, software or solution that can 100% guarantee protection. Therefore, in addition to preventative measures, we recommend implementing tools that will help minimise the damage if disaster does strike.
Cyber Security Insurance can come in handy when it comes to damage control and recovering losses resulting from a cyber-attack.

Our customers often ask us “Do I need cyber liability insurance?”. The fact of the matter is that any organisation that relies on technology to conduct its operations will benefit from cyber insurance. And let’s face it, in today’s day and age it is hard to find a business that doesn’t use technology!

What does cyber liability insurance cover?

There are different levels of cover and inclusions when it comes to cyber liability insurance. Below are just a few circumstances where cyber liability insurance could be valuable for our fellow SMBs:

IT expenses

Most IT service contracts would specify that malware/virus removal and data recovery are an out- of-scope service. Top this up with an emergency service markup and a callout fee and you are out of pocket for thousands of dollars in the event you’re hacked and have to urgently outsource IT services.

Lost revenue & wages

In the event you’re hacked and IT is down, you could be unable to send invoices, receive or send out orders, or even collect payments. Should your systems be down; you still need to pay staff even if there isn’t any work to do! Cyber liability Insurance may cover these costs so your business doesn’t have to suffer a complete loss.

Reputation

Once the word gets out that you’ve been hacked, your customers might be hesitant to deal with your business in the future. The repercussions of a cyber attack can be unpredictable, but it’s not unlikely that your businesses reputation could be dragged through the mud. You might only lose one client, or you might be mentioned in news articles all over mainstream media outlets. Should this occur, Cyber Liability Insurance could cover the costs of engaging a PR firm for damage control.

We recommend you consult a qualified broker who can provide you with tailored insurance advice for your businesses needs. At IT First Responder we trust insurance experts from Eastern Prudential Insurance Group. For expert Industry advice, contact EPIG on 02 9552 2588 or [email protected]

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