In a digitally-robust environment like today, organisations big and small are heavily reliant on the use of technology for needs ranging from the communicative to executive. Protecting financial data, making executive decisions, developing new products and getting ahead of their competitors are part of the infinitely long list of needs that technology serves for businesses today.
A big part of this is the protection and safeguarding against cyber threats and risks prevalent in an otherwise technologically-dependent world. We use technology in small and big ways every single day – from personal to corporate use. It can be hard to imagine a world without technology these days.
Business protection insurance is a type of insurance that covers businesses for tremendous losses if key events such as the death of business owners occur. More specifically, today, we want to shed light on an especially pertinent issue – cyber risks and threats. A cyber risk can be financially damaging if your business were left unprotected. If you own a business, then you must be aware that if left uninsured, any potential loss to your business could leave you with high financial risk.
The first steps to protecting your business comes with understanding what these risks are and how you can effectively target them.
As your leading broker, Expat Insurance Singapore has a wealth of experience and expertise in navigating insurance-related matters for both locals, expats and businesses. Not only do we deal with health insurance, we also work on tailor-made business protection insurance for all sorts of risks involved – from professional indemnity, liability and cyber risks. With Covid-19, the landscape is evolving rapidly – secure your business on all fronts.
Read more about our cyber risk business insurance here.
Why should businesses address cybersecurity threats?
According to Deloitte, a software company had lost millions in revenue after falling prey to a malware attack that scrambled hard drives, effectively impacting its receiving and processing systems. Similarly, a financial services firm had a software glitch that resulted in financial losses – forcing the company to sell its overvalued shares back to the market at a lower price.
For more popular case studies, consider the following. In 2013, Adobe had the personal information of 2.9 million accounts stolen. In 2011, the personal data of 77 million users was leaked at Sony’s Playstation Network – this resulted in 15 million dollars compensation to its consumers. In today’s age, cyber security is of major importance to businesses, especially small businesses that stand to lose much more in capital if attacks were to occur. Here are three reasons why cybersecurity threats are majorly crucial in business insurance planning:
Personal Data Protection
There hardly are organisations today that don’t need to collect data. Almost every other company does this, be it for marketing purposes, research, advertising or account management. A cyber hit can put a company at risk for poor operational reliability.
As cyber attacks are pretty prevalent today, it pays to be certain of just how long the road to recovery can be if your business were ever hit. The financial repercussions of such an attack could put the business in deficit. With little time to recover, huge deficits and lowered operational reliability, it can be hard to sustain the business.
Read more about business insurance plans here.
Lowered Client Trust
When you compromise the security of your consumers, it tarnishes your reputation, the bottom line and your client base. For businesses to succeed today, the trust and confidence of your consumers are more important than other factors.
A lack of proper business protection insurance against these cyber risks translates to significant impacts like the above.
What types of cyber risks can business insurance protect from?
- Privacy and data protection
As companies today rely heavily on the data they collect, it is crucial to protect the privacy of both consumers and employees associated with the business. Noting from examples of Sony and Adobe above, it is important to maintain a high level of integrity and reliability as a firm by signing up for data protection.
Whether you store it in a third-party cloud storage or an offsite data warehouse, you are reliable for any leaks or loss of data. Operational reliability and trust from consumers are integral to the company’s sustainability. On top of acquiring business protection insurance, testing your policies around data collection and protection can help you keep records clean in the long run.
- Notification requirements
Notification requirements are pretty commonly employed these days – notifying consumers of a breach and post-breach protocol. However, putting this measure in can easily add up to your financial costs too. Getting a tailor made business plan to cover this can help offset costs incurred when personal information is compromised.
- Forensic costs in evaluating and containing a breach
Notifying alone doesn’t cut it. There are high forensic costs involved in determining the extent of a breach and how the business can contain it. During the period of restoration, a comprehensive plan can cover any potential losses and expenses that follow it.
Cyber risks are not limited to just the above, espionage and loss of mobile devices are also possible threats. Securing a business protection plan against cyber risks for SMEs and larger corporations can be beneficial in the long run.
Beyond Business Insurance | How can companies prevent online security incidents
IT professionals alone are not responsible for ensuring the security and safety of the business’ data protection. Many organisations are under the impression that only the IT department is responsible for any cyber threats that ensue. However, all other relevant departments that work with data also have a part to play.
With basic training and refresher courses that can be conducted for newcomers along with refreshers for existing employees, you will be able to supplement your business protection better. Simply understanding that opening emails with malware or accessing unsecured networks can affect the protection of assets.
Invest into new IT initiatives & infrastructure
If there is anything to be certain about, it is the fact that our futures are set to be much more technologically enabled. With a deeper dive into tech-enabled solutions and services permeating our daily lives, companies need to invest into newer IT infrastructure, regular training and support to bolster capabilities against any cyber threats.
One way small companies can do so is by outsourcing business network solutions to third party companies that specialise in it.
Secure Your Business With Expat Insurance Singapore
From tailor-made solutions to on-going support, our team is here to help. We recognise the value of a full-fledged solution that not only protects the health of your employees, but also strengthens the foundation of a business in areas it will matter the most in a digital business environment.
Schedule a consultation with us to discover solutions for your business.