Have you thought about what you'd do if your business suffered a cyber attack tomorrow?

At Midland Insurance, we've talked to plenty of business owners who hadn't considered this possibility - until it was too late. E-commerce businesses, particularly small and medium-sized ones in Australia, are facing increasing threats online. Even if you have solid security practices, cyber threats can still slip through the cracks.

Cyber threats aren't just hypothetical

Our experiences with clients have shown us that cyber attacks aren't just news headlines, they're real and costly events. Small businesses tend to underestimate their exposure to online risks. Many clients initially think that because they're small, hackers wouldn't target them. But the reality is different.

Recovering from even a minor cyber incident can be enough to put a small business at serious financial risk. Many e-commerce businesses can't afford weeks or even days of downtime. And it’s not just about the money; reputation damage can linger for years.

How cyber insurance protects your business

Many Australian business owners are still unsure of what cyber insurance actually covers. To simplify, cyber insurance policies typically cover:

1. Incident response: The costs involved in hiring cybersecurity specialists to investigate and resolve the incident.
2. Business interruption: Compensation for lost income due to downtime following a cyber attack.
3. Notification and legal costs: Expenses for notifying affected customers, managing public relations, and legal fees.
4. Data recovery: The expenses associated with restoring or recovering data lost or encrypted by hackers.

We've previously discussed the average cost of a data breach, and those numbers aren't pretty. It makes sense to have protection in place, just like you'd insure your vehicle or property.

It’s about more than just money

Something important Helen mentioned was that cyber insurance doesn't just provide financial relief, it offers critical support and guidance during one of the most stressful moments your business will face. With the right policy, you'll have immediate access to professionals who manage these crises every day.

This immediate response can significantly reduce the overall impact. It allows you to focus on getting your business back to normal while experts manage the incident behind the scenes.

Why many Australian businesses still hesitate

Many of our clients initially hesitate to get cyber insurance because they feel their existing cybersecurity measures are enough. But the hard truth is, no system is foolproof. Cyber insurance isn't a substitute for good security - it’s a necessary complement.

Another common misunderstanding is the perceived complexity of policies. At Midland, we simplify things. Our tailored commercial cyber insurance solutions match your specific business risks.

Your industry matters

Different industries have different cyber insurance needs. We've found that businesses in industries such as film and TV, transport and logistics, and landscape horticulture are increasingly targeted. For instance, clients within our film and TV insurance programs have noticed rising threats due to the sensitive data they handle. The same goes for those involved in transport and logistics, an industry where supply chain disruption is extremely costly.

If you’re unsure about your industry's specific cyber risks, it's always good to chat with us directly. We’re happy to discuss how cyber insurance fits your unique situation.

Prevention and protection go hand in hand

Cyber insurance isn't your only line of defence, it’s just one part of a broader strategy. Preventive measures can reduce your premium costs and your overall risk exposure. Check out our guide on the 10 steps to help prevent cyber attacks in your business.

Taking these steps won't eliminate risks entirely, but they'll put you in a stronger position. Combining solid cybersecurity practices with tailored cyber insurance can significantly minimise damage if the worst happens.

Ready to talk cyber insurance?

Our experience with clients across Australia has shown us one thing clearly that those who have cyber insurance never regret it. The cost of not having it can be devastating. We're here to help you navigate this important decision easily.

If you're ready to take action or have questions, contact us today. We're always happy to chat.

Did you know? Australian small businesses are attacked online every 10 minutes. Cyber threats are very real, but the right insurance can make recovery much easier.

Still uncertain? Here's another helpful article that breaks down cyber insurance and why Australian SMEs need it more than ever.