SA businesses lose billions each year to cyber-attacks. Here’s how you can protect and cover yourself

SA businesses lose billions each year to cyber-attacks. Here’s how you can protect and cover yourself

– Debbie Smart (Director, Cornerstone Insurance Brokers)

As the digital age becomes more interweaved with our everyday lives, we are increasingly exposed to digital threats from all over the world. Globally, South Africa has the third highest incidence of cybercrime each year and it costs local business nearly R6 billion each year. These staggering statistics are available freely, yet too many small business owners are not prepared, protected or phased by the effect cybercrime can have on them.

Although ignorance and negligence could play a part here, the lack of knowledge about cybercrime and how to avoid it is most likely the cause. Cornerstone Insurance Brokers are committed to bring you the latest and most innovative business solutions to ensure that you are covered in the best way possible. Therefore, we have come up with some tips and advice on how you can cover and protect your company and clients safe from cyber-attacks.

Start by enhancing your IT security systems

The best way to keep cyberthieves out of your systems, is to ensure that your IT security is full proof. You can do this by looking at the following:

  • Asses the quality of your antivirus software and ensure its updated regularly.
  • Practice good password management and change your passwords frequently.
  • Do not open emails of which you do not know the origin.
  • Do not click on any unfamiliar links on emails, text messages or websites.
  • Log out of your devices when you are not using them and never leave any devices unattended.

Cover your business with cyber liability insurance

Sometimes there is no way to pre-empt or avoid a cyber-attack, but there is a way that you can protect and recover your assets. Cyber Liability Insurance is an innovative set of products that is specifically designed to cover losses accrued due to cybercrime. Looking at the statistics, the benefit of cyber liability insurance is obvious, but let’s unpack a few of the losses cyber liability insurance will cover:

  • Legal fees that arise due to cybercrime

If a cyber-attack results in the loss of sensitive client information or intellectual property that your business was tasked to keep confidential, you may be held liable for damages. This can lead to a hefty legal bill and other costs that your business might not be prepared for. If you have a cyber liability insurance policy, these costs will be covered.

  • Income lost due to systems that were down or compromised

If your entire IT infrastructure has been compromised or destroyed because of a cyber-attack, you will lose a big chunk of your income because you won’t be able to conduct any business.  Although this is not directly covered under a cyber liability insurance policy, business interruption insurance will cover these costs until your computer systems are up and running again.

  • Loss of intellectual property

If a cyber-attack causes you to lose intellectual property that set your business apart from competitors, there is a chance that you could lose current clients and miss out on future business. Any income lost in a situation like this, will also be covered by cyber liability insurance.

Will your business be sufficiently covered in the event of a cyber-attack? If there is even a grain of doubt, contact us today and we will assist you in setting up a customised cyber liability insurance policy to match your company’s needs and ensure that your business stays afloat.

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