Nearly every business in New Zealand now relies on the internet for day-to-day functioning.  And more and more businesses are storing information in the ‘Cloud’.

This means your business is more vulnerable to the effects of cyber crime.

With everything from accounting tasks to client management being carried out online, it's hardly surprising that cyber crimes are costing New Zealand businesses more than $625 million a year.

But I'm covered by my suppliers liability insurance

Most businesses rely on contracts with third party vendors, such as those who provide data storage, to cover any liability arising from cyber crime.  But given that insurance industry figures say cyber crimes have become the 21st century threat no business can escape - should all businesses consider the need for cyber cover?

Every day cyber attacks

Hacking is the most commonly talked about method of data breach but many breaches stem from everyday causes such as a lost or stolen laptop, or an employee who visits a website containing malware or accidently shares sensitive information.  It’s these every day risks that businesses need to be aware of and have systems in place to reduce risk.

Printers

One data storage device we overlook is the printer/copier/scanner.  If these devices have the ability to accept wireless signals from computers to print, then they can be just as easily hacked if not behind the company’s security software or firewall.

Outsourcing

Outsourcing payroll or the use of contractors to upgrade a company website presents risks from hacking and viruses.  Breaches often happen as a result of contractors’ access to a company’s data or network.

The financial costs of these every day risks could have a serious impact on small to medium businesses.  Business that can’t afford to repair their technology after a virus attack on their network, or survive the reputational damage following a privacy breach may be forced to shut down.

Surviving cyber attacks

At the very least your businesses should look at:

• Contracts with third party vendors providing data storage. 
• How do they store your data? 
• What are they liable for in the event your data is breached on their premises?
• Potential insurance cover available.

Traditional insurance products don’t address most cyber issues.  But insurers are striving to meet the challenge with new products being made available to the market, including cover for reputational or brand damage following a cyber crime.

Talk to a good broker about suitable insurance solutions and risk management procedures that will help protect your business and staff from the impact of cyber crime.

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