It is still common for many business owners to underestimate their own cyber exposure. It is not until they are caught off guard with an incident themselves that they realise the reality of the situation.
Take a moment to read some of the common misconceptions about cyber risk that we have discussed below.
| Common Misconception | Comments |
"My business is too small to be a target for a cyber-attack." | Insurers claim cyber-attacks against SMEs are increasing both in frequency and severity. Did you know:
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"We don't collect sensitive or private data, so we have no exposure." | Data breaches are just one of the many cyber risks facing businesses. Some other examples include but are not limited to:
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"We've invested in our networks so that they are secure." | According to ASBFEO as at 05 January 2018, 87% of small businesses believe that antivirus software alone protects their business from cyber attacks. Investing in security is paramount as this must be your first line of defence. However, claims have shown that despite significant investment in securing networks, no one can ever be 100% secure. Cyber criminals are becoming increasingly sophisticated, relentlessly finding ways in which they can infiltrate networks. Further, some cyber threats do not necessarily involve accessing third party networks. For example, social engineering fraud or the actions of a rogue employee(s). |
"Our third party cloud provider is responsible for our data/networks." | Incorrect in most circumstances. If the cloud service provider suffers an attack and goes down, meaning you cannot operate, it is your business that will potentially suffer first party business interruption and the additional costs incurred in attempting to continue trading. It can prove extremely difficult, potentially impossible, to recoup these losses from your IT provider. |
"If my funds are stolen, my bank will reimburse me." | If the bank was not negligent or at fault, the bank will most likely not reimburse you. You will most likely be held responsible if there was negligence on your part which allowed unauthorised access or if you or an employee were deceived into voluntary or erroneously wiring funds to a fraudster, i.e. social engineering scam. |
We note that the above misconceptions are generic and may not be accurate in relation to your specific circumstance. We further note that there may be other misconceptions relating to cybercrime that have not been included above.
How Coverforce can help
Our experienced insurance brokers assess your business' individual cyber insurance needs and come back to you with the best value insurance solution available from our extensive insurer network.
In the event of a claim, we work with the insurer on your behalf to ensure you get the full entitlement due under your cover.
For more information or an obligation free quote, please contact our specialised team at your local Coverforce Office.
Alternatively, you can simply fill out a Quote Form and one of our insurance brokers will get in touch with you within one business day.
