Does your business insurance include cover for risks in the digitalised world?

More companies are using digital innovations such as cloud-based software to enhance efficiency. While these technologies have many benefits, they can open your firm up to cybersecurity concerns. Ensuring your business insurance covers such risks is essential when dealing with modern technology.

Are you protected against cyberthreats?

Change, largely driven by digital innovation, presents both significant challenges and opportunities.

In a recent report, PwC indicated that insurers are increasingly concerned about cybersecurity methods, a concern that has been steadily increasing since 2011.

The Australian results from the survey found that cyberrisk increased from 19th place in 2011 to 13th in 2013 to become the top-ranked concern for 2015.

With technology changing the face of traditional business models, the results of this survey reflect the disruptive nature of technology, despite its many benefits.

“The [insurance] industry is on the precipice of an enormous amount of change, largely being driven by digital innovation, which presents both significant challenges and opportunities,” says Scott Fergusson, PwC Australia’s insurance leader.

Increased smartphone use by businesses can open up serious security threats.

Growing use of tablets and smartphones fosters a susceptibility to cybercrime

Managers and employees alike utilise mobile phones and tablets in personal and professional day-to-day life. Many cybercriminals are aware of this and use malware to target mobile apps, which are often not as well-protected as traditional software, despite allowing similar levels of accessibility.

While business insurance tends to include traditional ways of minimising risk of accidents, cybercrime is becoming a serious threat. The benefits of technology tend to outweigh the risk of cybercrime, if managed correctly.

Deep Security Labs Director Pawan Kinger, emphasises the growing sophistication of cybercriminals’ abilities to insert malware to obtain information.

“Attackers leverage vulnerabilities and weaknesses in all platforms. They just need a way to get in,” he says.

In light of this, the significance of minimising the risk of accidents through procedural practices is highly relevant to businesses that utilise mobile technology for daily operations.

Incorporating cyber insurance as part of your business coverage can help manage the risk of using mobile technologies. if you are concerned about cybersecurity, contact your nearest MGA broker for information on how your business insurance can be tailored to your specific needs.