Insure Against Cyber Risk

In our continuing series on Cyber Risk, we thought it would be interesting to see what the potential cyber risk is with the new Australian Privacy Principles and its implications for small business.

Are we prepared

90 % of private companies don’t have insurance against cyber risk,  that’s one of the findings in Chubb 2013 Private Company Risk Survey. That means the uninsured companies will have to foot the bill if the are found liable for loss as a result of cyber crime, or data breach.

So if your cloud computing company is breached you may find your self ultimately liable for the loss of data .

Australian Privacy Principles

The National Privacy Princibles (NPP) will be replaced by the Australian Privacy Principles (APPs) on 12 March 2014 the change includes civil penalty regime for breaches of privacy. Click here for a copy of the privacy fact sheet

APP Privacy principle  8—cross-border disclosure of personal information, will require your clients information held on servers in countries is at least substantially similar to the way in which the Australian Privacy Principles protect the information.

Where is your data held? And how does your cloud company protect it?

You could simply call Salesforce, Google, Jive Software, Demandware or Xero and ask which country your data is stored in or backed up in, as long as that country meets the similar privacy standard to Australia your fine.

Steps that may help your company

  • Develop an Incident Response Plan (IRP)
  • Encrypt Portable devices
  • Assess cloud services providers’ data security
  • Get Cyber Liability Insurance

If you are still unsure, speak to a specialist, get them to review your potential risks and possible mitigation.

Steve Sloan

Steve is a licensed insurance broker and marketer. He is an internet insurance pioneer in Australia.

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Any advice that may have been given is general advice only, please be aware that we have not taken into consideration your needs, objectives or financial requirements. Before deciding to purchase a financial product you should consider the appropriate Product Disclosure Statement to ensure the product is suitable for your needs.

First Published on GreatChoice