The Importance of Cybercrime Insurance to Sunshine Coast Businesses

The use of computers and other technologies is essential for most of today’s SMEs. Apart from making office functions more efficient, more clients can be reached, and less space for documentation is needed. Unfortunately, the use of newer technologies also comes with a host of risks, none of which is bigger than cybercrime

smbs overlooking online security risks

As detailed in an article published on ZDNet last July 28th, businesses, who particularly use computer technology within their operations but don’t always have the resources for the best security possible, are currently at risk the most:

Small to medium businesses (SMEs) in Australia are running the risk of becoming cybercrime victims, as new technologies are brought into their businesses, according to a new report from Zurich.

The Global interconnections of cyber risk: impact on small and medium-sized enterprises report (PDF) has warned that while the internet has provided SMEs with “countless benefits”, including allowing organisations to handle more customers at the same time and compete with larger companies, SMEs have started to overlook the risks that are involved in using the internet, and it is not just data breaches or theft of trade secrets but larger global shocks.

The warning to SMEs is directed at owners, risk managers, corporate executives, board directors and government officials, which the report says are generally ‘not prepared’ for the internet of tomorrow.

While some SMEs may be able keep the security of their systems updated to prevent loss information theft, among other crimes, it can’t be helped that as the technologies continue to advance, so do the ways to be put at risk.

Since these systems cannot be completely avoided, insurance providers have now began responding by developing policies, which cover the losses associated with cybercrime to your own business and also third party claims for liability from customers and suppliers. While the coverage would be dependent on the nature of the risk and how devastating it is to a business, the existence of cybercrime insurance in the Sunshine Coast is helpful in staving off the possibility of bankruptcy or the results of losing clients due to a compromised system or legal action against you.

Sunshine Coast insurance brokers like those from Insuring the Product are known to possess adequate expertise in cybercrime insurance, and working with such companies would help SMEs best ensure they get the right coverage for the type of systems they use and their business exposure to cybercrime.

(Source: SMBs overlooking online security risks: Zurich, HDNet, July 28, 2014)

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