Businesses remain unprepared to prevent the data breaches resulting from cyber attacks, according to a financial expert. As attacks grow in number and cost, adequate protection will need to be put in place.

With the recent amendment of the Privacy Act, businesses will need to be increasingly vigilant when it comes to handling personal customer and employee information – especially as computer networks become more complex.

The changes to the act, launched on 12 March 2014, changed the regulations surrounding the handling of personal information

Managing Director at Aon Financial Specialities, Jennifer Richards, explained the necessary steps for businesses to take, and how both security systems and comprehensive business insurance were required.

“Network Security and Privacy (NSP) risks are both an emerging and constantly evolving issue and organisations need to ensure they have adequate measures in place to address them,” Ms Richards says.

“Those measures range from systems and processes on the IT front in relation to harvesting, storing and disseminating information, through to controls around personnel access and all points between.”

A number of businesses are likely neglecting to take out an adequate level of cover, one that insures them against breaches and more advanced attacks.

“Specialist cyber insurance policies can cover expenses such as immediate crisis management, forensic analysis, the reparation of computer systems and any loss of income resulting from the incident,” says Ms Richards.

Repairs following a breach can often be extremely costly, due to the need for customer and employee compensation, and installation of new security systems. In addition, restoring customer trust? can be difficult.

Fortunately, the team at MGA are equipped to help you out when it comes to cyber crime cover, as part of a comprehensive business insurance programme. For information on the right policy covers, contact the team at MGA today.