Are You Cyber Wise?

Abbott Insurance Brokers’ Russell Power believes anyone in business should consider cyber insurance a standard cost of doing business in a digitally connected world.

According to data provided by government organisation CERT NZ financial losses to cyber crime increased a staggering 66 per cent in the first quarter of 2023. That’s a $6 million cost to the New Zealand economy, affecting business and individual back-pockets.

While often random in nature – think automated hacks by the millions – nowhere and nobody is immune. No business is too small or insignificant. If you leave a digital footprint, you can be found.

Cyber criminals have embraced AI too, using generative AI technology to launch increasingly sophisticated scams that target individuals based on their online profiles with professional looking digital ads and supporting documentation.

What to do if you’ve been hacked

CERT NZ offers practical guidance to help you keep information safe and secure online and respond to cyber threats or cyber attacks. You can also report suspicious activity.

The Privacy Commissioner is another excellent source of information.

It’s well worth a look to understand your rights and responsibilities, including the four key steps for dealing with privacy breaches: contain, assess, notify and prevent.

Your cyber safety net

Think of cyber insurance as an extra layer of protection – a safety net to shield you from the financial and reputational fallout of cyber attacks.

It plugs the coverage gaps everyday business and personal insurance doesn’t in two ways. Firstly, cyber crime often necessitates specialised assistance from forensic IT and security consultants, lawyers and experienced media managers. Small business owners typically don’t have these connections and nor does the average IT company offering business support services.

Secondly, cyber insurance can cover expenses relating to data recovery, financial losses (including loss of profits), investigation costs, legal fees, fines and penalties, and costs to reinstate any damaged hardware, plus software and data restoration.

Cyber insurance isn’t just for large businesses or corporates. It’s tailormade for businesses of all sizes, and individuals seeking comprehensive protection. And if you or your team members work from home or in public spaces, you really need to reconsider your digital protection and ensure you have the right safeguards in place.

Russell Power is an experienced insurance broker with a keen interest in cyber crime.

He says cyber insurance is one of the most misunderstood insurance protections and believes anyone in business should consider it a standard cost of doing business in a digitally connected world. Reach out to Russell at Abbott Insurance Brokers if you’d like to know more. abbott.co.nz