Why cybertheft is a growing concern for small businesses

Discover the key to keeping your company safe should you experience a cyber attack.
Posted on February 16, 2017 in Business

These days, it's necessary as a small business owner to have a website to promote and sell your goods and services. When customers are interested in a service, the first place they go is to the web to find a business.

However, though the internet is a necessity for business owners, it comes with its risks. Business interruption from cyberattacks is a growing concern, including for small business owners.

How cyberattacks damage your company

Business interruption from cyberattacks is a major problem for Australians. Insurance and Risk explains that cyberextortion, cybertheft and denial of service attacks are frequent incidents in Australia. While large enterprises are often the victims of these crimes, small companies are also targeted, mostly because they have less protected systems than larger companies. 

Cyber attackers are giving businesses a run for their money.Cyberattacks are giving businesses a run for their money.

According to an EY Global Information Security survey of 1,825 businesses across 60 countries, a majority of organisations (67 per cent) are confronted with cyberthreats regularly, and 37 per cent have no real-time monitoring of their IT against these threats. This shows that many companies are vulnerable.

After being attacked, companies have to spend an enormous amount of time and money addressing the problem, which subsequently leads to considerable income loss. If you're a small business owner, a cyber-attack also means that you have to deal with the costs of repairs and, even more importantly, regain the trust of your customers, employees and shareholders. 

How cyberinsurance acts as a safety net 

The root of the problem is that companies, especially small ones, tend to inadequately minimise the risk of accidents. However, one of the best ways to protect yourself against cyberattacks is to get business interruption insurance. More business leaders are catching onto this trend, too. While only 14 per cent of small Australian businesses have cyberinsurance policies at the moment, according to Inside Norton by Symantec, 19 per cent intend to buy them in 2017.

While cybersecurity to prevent attacks from happening in the first place is wise, having insurance protects you after all else fails. Inside Business quotes Mark Gorrie, a director at Symantec who explains that the appeal of cyberinsurance is that it "presents an avenue for small businesses to become more resilient to a wide range of cyberrisks and the costs associated with data breaches and business interruption."

Looking into cyberinsurance could be your best business decision yet. Contact MGA Insurance Brokers to learn about our offers that will help keep your business safe in the new technological era.