To protect your business, implement fundamental cybersecurity measures. ASIC expects businesses to take reasonable steps based on the nature of the data they hold.
- Updated firewalls and antivirus protection:
Regularly update and monitor your systems to defend against threats.
- Regular patching of software:
Ensure all software is up to date to address known vulnerabilities.
- Multi-factor authentication (MFA):
Add an extra layer of security to your login processes.
- Documented incident response plans:
Have a clear plan to respond to cybersecurity incidents.
- Access to cyber expertise:
Whether in-house or outsourced, ensure you have experts to manage your cybersecurity.
Neglecting these fundamentals can leave your business exposed to significant risks.
The Role of Cyber Insurance
While the above measures provide a foundation, cyber insurance serves as an extra safety net to mitigate cybercrime risks. Cyber insurance can cover legal costs, data breach responses, client notifications, business interruptions, and more.
It can also cover crisis management costs, such as legal support, IT forensics, credit monitoring, and communications, as well as extortion response, lost income from business interruption, data restoration, and third-party liability for claims from regulators or affected clients.
Other benefits often bundled with policies include free or discounted access to cybersecurity experts, threat intelligence, IT vulnerability checks, and training—services that can reduce your risk and lessen the impact of a cyberattack.
However, it’s crucial to understand that insurers may limit or deny coverage if basic security controls are not in place.
Insurers now expect businesses to have essential cyber protections like multi-factor authentication, secure backups, staff training, and a response plan. If your setup doesn’t align with your policy—or hasn’t kept updated with changes like new systems or additional data—your claim could be denied, even if the policy is active.
Regular policy reviews help ensure you remain covered as your business and cyber risks evolve. They also keep you informed of any new exclusions or requirements, like extra cover for social engineering. Staying current can protect your eligibility and enhance your response if something goes wrong.
Staying Compliant and Secure
To maintain compliance and protect your business:
- Sign up for alerts from the ACSC: Act promptly on notifications to stay ahead of threats.
- Train staff regularly: Educate your team on phishing, password security, and incident reporting. For instance, your finance staff may play a crucial role in your front line defence against breaches.
- Conduct annual cyber audits or risk assessments: Use internal resources or third-party experts to identify vulnerabilities. Start with this official cyber security checklist.
- Document and review IT and data protection policies: Keep your policies up to date and ensure they reflect current best practices.
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