Common Types of Risks Covered in Cyber Insurance Policy
Cyber-attacks can further be specific and may lead to more serious threats, which you can prepare ahead for. As a beauty and cosmetics business, you may be exposed to the following.
- First-party losses due to data privacy breaches
- System downtime and regulatory investigations
- Legal costs and other third-party expenses
- Cyber incidents leading to forensic investigation, incident response, and reputation management
- Exposure to crimes like online extortion, identity theft, and fraud
What does cyber insurance cover?
Cyber liability insurance may include coverage for the following:
- Computer System Security Failure
- Data breach management and recovery
- Cyber Business interruption costs
- Cyber Claim Defence Costs
- Response to regulatory investigations
- Payment Card Industry (PCI) fines
- Equipment breakdown due to malware
- Cyber Emergency Response Services
- Cyber Extortion Event
- Media Claim Defence Costs
How likely is a cyber incident?
Cyber attacks are on the rise in Australia. The Australian Cyber Security Centre (ACSC) reported they received 67,500 cybercrime reports over the 2020-21 financial year. An increase of nearly 13% from the previous financial year. This equates to one report of a cyber attack every 8 minutes!
ACSC note that no sector of the Australian economy is immune from cybercrime and that small to medium enterprises, families and individuals are all targets for cybercrime.
Protect Your Business from Cyber Threats
There are several measure that you can do to help keep your business safe from the fallout of a cyber attack:
- Back up your data. This is a cost effective way of making sure information is recovered in the event of a cyber incident.
- Secure your network and data by keeping all operating systems and security software updated. Firewalls and spam filters are also good at reducing phishing emails which are a common tactic hackers use.
- Another standard practice is using Multi-factor Authentication (MFA) on all of your devices, systems, and software programs.
- Use secure passphrases instead of passwords, consisting of a combination of upper and lower case letter, numbers and special characters.
- Invest in IT infrastructure to enhance your cyber security.
- Encrypt sensitive data that you send, receive and store.
- Ensure your staff have a clear understanding of what is acceptable when sharing data, using company computers and devices, and accessing internet sites. Cybersecurity training is also beneficial.
- Have a cyber insurance policy in place.
