Business interruption insurance could be the wisest investment new Australian business owners make in 2014, according to the 2014 Allianz Risk Barometer Survey 2014.
The report, released on January 14 this year, questioned more than 400 corporate insurance experts from 33 countries about their forecasts of the biggest risks facing businesses around the globe.
Business interruption, natural disasters and fire and explosion topped the list this year, holding the same positions recorded in the barometer survey in 2013.
A new entry into the report this year cyber crimes, with at least 12 per cent of insurance experts highlighting this as a major risk area for Australian businesses.
“There is now a general understanding among people who are not IT specialists that this is an emerging risk,” says Nigel Pearson, Global Head of Fidelity, Allianz Global Corporate & Specialty.
A study published by Verizon Enterprise this year found 79 per cent of 2012’s data breaches were ‘crimes of opportunity’. Additionally, 96 per cent of these data attacks were ‘not highly difficult’ and 97 per cent would have been avoided through basic or intermediate controls.
This means businesses are falling victim to cyber crime because they are failing to adequately protect themselves.
“Threats are evolving at an exponential rate. Whereas 10 or 15 years ago it was just hackers doing it for the kudos, today we see organised crime moving into this space, regarding it as an extremely lucrative market,” Mr Pearson explained
“Meanwhile, changes in the legislative environment around the world are making any failure to secure a person’s data increasingly painful for companies in the forms of heavier fines and other penalties.”
It is therefore important to ensure your current business insurance policy will protect your organisation if you are found liable for losses caused during a cyber crime.
For more information on adding cyber cover to your business insurance policy, contact the MGA Insurance Brokers team today.