Business Pack Insurance

What is Business Package Insurance and Do I Need it?

As the owner of a small to medium-sized business, it is particularly important to be careful when evaluating your business insurance needs due to the potential financial impact in the event of a loss. In today’s volatile business environment however, risks are increasingly diverse and complex, which makes it difficult to find insurance that will fully protect your business.

Common risks faced by today’s business owners include:

  • Financial Risk: The risk that your business will not be able to meet its financial obligations.
  • Security Risk: The risk of fraud, theft, embezzlement, or misdirection of funds.
  • Property Risk: The risk of flood, fire, storms or earthquakes causing damage to business property.
  • Legal Risk: The risk of your business facing legal action from customers, suppliers, employees, competitors, investors, or other parties.

Business Pack (or Buspack) Insurance is a common insurance package that provides cover for a wide range of risks. However, it is a complicated insurance as it has many features that are designed to help protect your assets, employees and customers from these risks by offering financial support if an unforeseen circumstance negatively impacts your business.

What is Business Pack Insurance?

Business Pack Insurance provides a wide range of insurance protection for your business. It protects companies from losses that may occur due to unforeseen events during the normal course of business operations.

A typical Business Pack will combine a wide range of insurance types such as coverage for property damage, financial loss, legal liability and some employee-related risks.

Does My Business Need Business Pack Insurance?

Business Insurance is vital for SMEs across Australia. For many people, their business is their livelihood and their main source of income or assets. Protecting your business from the range of risks that can negatively impact or even cripple it is critical.

You should consider insuring your assets, revenue, and liabilities to protect your company against potential risks. A Business Pack Insurance policy will ensure you meet these requirements, as well as protecting your business for other circumstances that pose a risk.

Business Pack Insurance is important for businesses regardless of their size or industry; from sole traders to owners of Small to Medium sized businesses, you should have an insurance policy that protects you against everyday risks.

Why Choose Business Pack Insurance?

A Business Pack comprises the most common insurances you need to run your business with peace of mind. By ‘packaging’ your business insurance you can potentially cover many of the risks your business faces in the one policy. Furthermore, by grouping and underwriting several risks together, insurers may offer better premiums and terms than if individual policies were purchased.

Disclaimer

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.

Small Business Risk Management Tips for 2016

According to the recently released Allianz Risk Barometer, 2016* businesses are less concerned about the impact of traditional industrial risks such as fire and natural catastrophes, and are increasingly worried about the impact of fierce competition in their markets and cyber incidents.

The risk landscape is changing and it’s more important than ever for small and medium sized businesses (SMEs) to be aware of all the risks they are exposed to. The key to surviving today’s challenging commercial environment is to effectively manage your business risks, both traditional and evolving.

What is Risk Management?

Risk management is a process in which businesses identify, assess and treat risks that could potentially affect their business operations.

As a business owner, you must decide how much risk you are able to take in your business. While taking some risks may be critical to the success of your business, exposing your business to certain perils can be extremely harmful.

Making a Risk Management Plan

Once you’ve identified the main areas of concern in your business, a risk management plan is essential. The plan should detail strategies for dealing with each risk. Reduce the likelihood of an incident affecting your business by devoting adequate time and resources to your risk management plan, and follow the following steps:

1. Identify Your Risks: Conduct a review of each function in your business to identify the potential risks that may occur, particularly those which could have an impact on your ability to continue operating to a satisfactory level. Analysing records of previous safety incidents or complaints can also help to identify issues and be sure to consider external risks that could have an impact on your business, e.g. suppliers and the political climate.

2. Assess the risk: Once you have identified the risks that are most likely to affect your business, each one should be assessed to establish the likelihood of it occurring and the consequences it would have if it occurred. A Risk Analysis Matrix can help you to determine the level of each risk and your business’ ability to manage each individual risk. The Risk Analysis Matrix encourages you to consider the following for each risk:

  • Adequacy of existing controls
  • Consequence rating
  • Likelihood rating
  • Level of risk
  • Risk priority

Click here for more information on this topic, and a practical Risk Management Matrix that you can use in your business.

3. Manage the risk: Managing risks involves developing cost-effective options to deal with them. Risks can be eliminated, reduced (usually through development of policies and procedures), transferred (via insurance), or accepted. Look at all the risks that your business is exposed to and decide the best way to manage each. An insurance broker can assist you to find insurance policies that will help cover those risks that cannot be minimised or avoided.

4. Monitor and review: Risk identification and management should not be a one-time practice. Your risk management plan should be regularly monitored and updated in order to ensure effective control measures are in place and insurance cover is adequate. New and developing risks should also be incorporated into the risk management plan as they occur.

*Allianz Risk Barometer 2016: http://www.agcs.allianz.com/assets/PDFs/Reports/AllianzRiskBarometer2016.pdf

Disclaimer

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.

Business Insurance

Melbourne Tyre Fire Highlights Importance of Insurance

The year got off to a bad start for a recycling plant in Melbourne’s West, when a pile of tyres caught fire, causing a plume of toxic black smoke to billow 50 metres into the air.

The fire started shortly before 9am on Monday the 11th of January at a recycling plant in the industrial area of Broadmeadows where over 150,000 tyres caught alight and water bombers had to be called in to help extinguish the blaze. Despite efforts to contain the fire it continued to burn for several days and affect the surrounding suburbs.

While there were no reported injuries or damage to surrounding property, the incident is likely to incur significant costs for the recycling plant, which is now embarking on a huge clean up mission. From fire and theft, to legal liability, natural disasters, economic uncertainty, and technological risks, this incident shows that disaster can strike at any time.

If an unforeseen circumstance does impact your business, as the business owner you are often left exposed to a number of costs that have not been planned or accounted for. Most businesses would struggle to cope with an unexpected financial hit, and may be forced to cease operations either temporarily or permanently. With appropriate Business Insurance in place, this can be avoided.

Business insurance can protect your company from losses incurred as a result of events that occur during the normal course of running a business. Insurance can cover many different aspects including property damage, legal liability, consequential financial loss and employee-related risks.

In order to obtain the most appropriate business cover, your insurance needs need to be evaluated based on the risks your company is exposed to. A company’s risk exposure varies significantly based on a number of factors such as the industry you operate in, the number of employees you have and the types of goods or services that you provide.

Effectively assessing your business risks and the types of coverage available to you from different insurers and policies can be overwhelming. This is particularly important for the owners of small to medium sized businesses, who are more likely to have more personal financial exposure in the event of a major loss.

We have the experience and expertise to help you make sense of it all and we can recommend the most appropriate cover to fully protect your business and assets. Speak to us about making sure your Business Insurance is right for your circumstances.

Disclaimer

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.

 

Management liability insurance

Management Liability: Learning from the Office Christmas Party

After the Christmas break, there are inevitably a few employees coming to work red-faced after their behaviour at the office Christmas Party. While you may consider these issues to be between your employees, as a small business owner, you can be held responsible for the actions of your staff at a work function.

The month of January brings with it an increase in the likelihood of a workplace claim arising from inappropriate conduct at the office Christmas Party. Harassment, sexual harassment, bullying, discrimination, and workplace health and safety issues are common complaints.

Under anti-discrimination laws, the employer can be held vicariously liable for the actions of its employees in relation to harassment, sexual harassment or discrimination committed ‘in the course of employment’. Employer-sponsored events such as the office Christmas Party falls under an events that occurs ‘in the course of employment’, but it’s also important to be aware that employers are responsible for the conduct of their employees at all work related events, both on and off-site. This includes unplanned and spontaneous events that may occur, for example, after a client meeting.

Ben Thompson, CEO at HR consultancy firm the EI Group warns that employers have been found to be liable for an employee’s inappropriate conduct at work-related events. He advises the potential cost of claims against the business for the drunken actions of a staff member could be in excess of $10,000.*

It’s important for employees to be aware of this risk and take reasonable steps to minimise the chance of it occurring, for example:

  • Ensuring that employees are made aware that responsible and respectful behaviour is required by all attendees at any work event, formal or informal
  • Advising employees that unplanned and spontaneous functions or events may also be work related and therefore workplace policies and rules apply
  • Sending an email to all employees prior to any organised event to remind them of their responsibilities and to refresh them on relevant workplace policies
  • Providing training where required to enable employees to adhere to workplace policies and behaviour standards
  • Making employees aware of the consequences of failing to adhere to the policy
  • Ensuring the responsible service of alcohol and making sure food and non-alcoholic drinks are available at all work-related functions you organise.

While these procedures may minimise the risk of this occurring at your workplace, the possibility always remains that an employee will act out with the guidelines and leave your business in the firing line.

A Management Liability policy helps to protect your business against risks of this nature, but it’s important to have a solid understanding of what you are seeking coverage for first. We can help you make sense of the policies available and ensure that you purchase the appropriate product for your business needs.

* Source: http://www.hcamag.com/ ‘Avoid Christmas Party Liability’ [Published 15th November, 2011]

Disclaimer

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.

Risks Facing Your Business in 2016

As a business owner, being forward thinking is imperative to the continued success of your company. The end of 2015 is fast approaching, so in all likelihood you are already starting to consider the risks that are likely to face your business in 2016.

Based on our knowledge of the insurance market and its cycles, we have determined Global Warming, Bushfires, Cyber Crime and Management Liability claims as some of the main issues that will affect Australian businesses in the coming year.

Global Warming

Due to operating in one of the most vulnerable countries in the world to climate change, companies across Australia should be aware of the effects that global warming may have on their operations in the coming years.

A new study released by civil engineers from the University of New South Wales has found that global warming is likely to lead to an increased risk of severe weather events in Australia; causing an increase in rainfall, as well as intensifying wind speeds of tropical cyclones. As the risk of natural catastrophe has never been greater, it’s more important than ever to protect your business with comprehensive insurance cover.

Bushfires

The Southern Australia Seasonal Outlook has predicted an above normal fire risk this summer as the El Nino cycle brings a hotter and drier 2016. The fire season’s severity and duration is likely to worsen across Australia as a result of warmer water temperatures in the Pacific and Indian Oceans. Businesses in Victoria and Western Australia are likely to be most affected by this heightened bushfire risk, and should prepare accordingly with appropriate Property and Business Interruption insurance cover.

Cyber / Hacking

 According to a defence force intelligence unit, cyber attacks on Australian businesses and government increased by 20 per cent in 2014. Ben Heyse, CBA’s Chief of Information Security recently warned that the number of attacks is likely to continue to increase into 2016, as the tools available for executing a cyber attack are becoming more widespread and more sophisticated.

The most commonly targeted sectors are banking and finance, resources and energy, retail and telecommunications, however every business that operates at least in part online is a target for cyber criminals. The risk of such an attack should not be ignored.

Management Liability Exposure

Increased regulation has heightened the operating risk for businesses across Australia, with more and more managers and business owners finding themselves exposed to Liability claims. These claims can arise from a number of circumstances such as:

  • Shareholders (statutory derivative actions_
  • Employees (claims of wrongful dismissal and sexual harassment)
  • Statutory bodies such as the Australian Securities and Investments Commission and WorkCover
  • The Australian Competition & Consumer Commission
  • The Corporation itself (actions brought by a liquidator on behalf of the company alleging insolvent trading).

Instances of litigation are continuing to increase across all sectors of the Australian economy, and businesses and key staff are feeling the full affect. As these claims do not seem to be ceasing, Management Liability risk should be a consideration for is businesses operating across Australia.

If you have any queries about the above, or would like more information on emerging risks for 2016 feel free to contact us.

Disclaimer

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.

 

Do I Need Electronic Equipment Insurance? Considerations for SMEs

As the world becomes increasingly digitalised, and businesses operate more and more online, electronic equipment has become an increasingly important policy for the majority of today’s business owners. What would you do if your business’s computer systems or other electronic equipment were damaged or broke down? Chances are it would have a great effect on your business – you may even be unable to operate until they were repaired.

Electronic Equipment insurance is designed to help minimise this risk to your business, covering the costs and losses incurred in the event that any of your electronic equipment is out of action. With electronic equipment insurance, you will be able to reinstate or repair the damaged or broken-down, equipment and to hire replacement equipment in the meantime to ensure that your business can continue to run.

We’ve put together a short summary of the policy to give you a basic understanding so that you can consider whether it may be relevant for your business. While we have intended to offer an overview of a typical Electronic Equipment policy, it’s important to bear in mind that the type and nature of cover varies widely among insurers, and encourage you to seek further advice from an experienced insurance broker if you want to learn more about this product.

What Is “Electronic Equipment”?

Electronic Equipment is a broad term. The exact definition will vary from policy to policy, but the kinds of things that are usually covered include the following:

  • Electrical Machinery
  • Mechanical Machinery
  • Computer Systems
  • Software
  • Interconnecting Cabling and Piping
  • Air Conditioning Systems
  • Equipment Connected to and Operating from a Computer

There are certain types of equipment that usually do not fall under the definition of Electronic Equipment, such as motor vehicles, portable electronic equipment and items that are typically used domestically (e.g. a blender or vacuum). This can often causes confusion with policy-holders so it’s important to note the exceptions to your policy as you may need another type of insurance to cover these items.

Is Electronic Equipment Insurance A Stand-Alone Policy?

Some insurers offer Electronic Equipment Insurance as a stand-alone policy, while others offer it as part of a package. Whether purchased alone or as part of a Business Pack, there is a wide range of Electronic Equipment policies available that will suit the requirements of most businesses.

Is Electronic Equipment Insurance Worth Considering?

Before purchasing Electronic Equipment insurance for your business, it’s important to have a solid understanding of the types of equipment and situations you are seeking coverage for. We can help you make sense of the policies and ensure that the policy you are considering will comprehensively cover what you need.

Disclaimer

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.

SMEs Exposed: The Increasing Importance of Management Liability Insurance

As more and more SMEs across the country are facing litigation, Management Liability Insurance is fast becoming a must-have for Australian businesses.

Corporate Litigation is a significant risk exposure for today’s business owner, however the uptake of insurance cover for this risk is relatively low, with under 30% of Australian Businesses opting for the cover [Insurance Business Online, 2015].

According to Chris Stallard of Vero (a major Australian insurer), the lack of uptake in Management Liability Insurance is due to the market perception that this particular insurance product is only relevant to bigger firms. This assumption is inaccurate as all business small and large have found themselves subject to litigation in recent years.

The last ten years has seen an increase in the number of claims arising from shareholders, clients, creditors, competitors and regulatory bodies. With this in mind, the size of the business isn’t necessarily a deciding factor in whether a claim is likely or not, rather in the business’ interactions with internal and external stakeholders. As no business operates in isolation, there is always the potential risk of a liability claim.

Just like Property, Fire and Business Interruption; Management Liability should be a serious consideration for any Business Insurance policy. The most common types of claims that fall under Management Liability Insurance relate to breaches of Director’s duties, or false, misleading and deceptive conduct by Directors and Officers. In the event that such a case is brought against your company, the legal costs to defend allegations alone can be financially crippling.

Management Liability Insurance protects the Directors and Officers of a business, and the corporation itself in certain cases against the risks and exposures of running the business. A typical policy may cover:

  • Representation costs where a Director or Officer is legally required to attend an inquiry or investigation relating to the affairs of the corporation
  • Legal costs & expenses in the defence and investigation of a Directors & Officers claim
  • Any compensation required to be paid by the insured in order to dispose of a Directors & Officers claim

Speak to us about whether Management Liability Insurance may be an appropriate cover for your business to consider.

Disclaimer

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.

Is my Company at Risk of Cyber Crime?

The number of detected cyber attacks skyrocketed in 2014 — up a staggering 48% from 2013 [Study: Cyberattacks up 48 percent in 2014 The Hill.com]. As this type attack continues to dominate the headlines, it’s natural for business owners to wonder if their business could be the next target.

Small to medium sized retailers run the risk of being a victim of cyber crime in 2015, with the industries most at risk being those that hold personal or sensitive information on a lot of people, or those using cloud & IP solutions. If your business falls into one of these categories, you should make sure you have stringent security strategies in place, backed up with a comprehensive insurance policy. Some of the industries most vulnerable of a cyber attack are:

The Retail Industry and Online Stores

The 2014 Trustwave Global Security Report found the retail industry to be the top industry compromised by cyber crime, making up 35% of the attacks investigated. Retailers are an attractive target for hackers as they store a huge amount of customer information, much of which is up-to-date, accurate and often stored alongside the customer’s credit card number. This data is extremely valuable to hackers. Small to medium sized retailers are particularly susceptible to attacks of this nature as their security systems are easier to infiltrate than their larger counterparts, and they don’t have the administrative, financial and legal resources to fight back.

Medical Industry

The number of healthcare organizations that have reported a criminal cyber attack is on the rise, from 20% in 2009 up to 40% in 2013. [Think Tank on Data Protection Policy: Ponemon Institute 2013 survey by the Ponemon Institute 2014]. Hackers target the medical industry for a number of reasons. Medical records contain a wealth of information including Protected Healthcare Information and Personally Identifiable Information, which can be sold for a high value on the black market. Combined with the vulnerability of software in the medical industry in comparison to other sectors, it has become an extremely lucrative target for cyber criminals. 

Professional Services

Hackers are interested in the in-depth user and client data stored in the IT system of businesses operating in the professional services industry. This industry is a particularly attractive target for a cyber attack due to the amount of detailed information that is held on each client, which can be sold on the black market for a considerable price. The regularity and number of cyber attacks in this area has increased in recent months, and travel insurer, Aussie Travel Cover (ATC) was one of the latest victims, finding 770,000 personal data entries in its database compromised in December 2014.

Corporates Using Cloud Computing and Remote Networks

Cyber criminals are aware of the amount of critical information that is stored in the cloud, from sensitive corporate data such as passwords and financial statistics, to business secrets and personal information. Clouds are attractive targets for cyber criminals as they cannot be protected by conventional security precautions such as firewalls, and they are often attached to a number of other devices, which hackers can penetrate once they are in. Knowledge around cloud breaches is minimal as companies often do not want to admit to a breach of this nature, so improving security in this area has proven difficult.

The number of cyber attacks is continuing to rise, with hackers targeting a huge variety of companies across a number of industries. There is no ‘typical’ company that is targeted and no ‘typical’ attack that we can defend against.

As a business owner you must be vigilant. A comprehensive insurance policy can help protect your assets and your business against considerable financial loss. Contact your Authorised Representative for information about how Cyber Insurance can protect your business.

Disclaimer

This article is not intended to be advice and you should not rely on it as a substitute for any form of advice. Before you purchase insurance you need to properly understand the policy’s significant features, benefits and risks and you should carefully read the relevant Policy Wording.

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.

 

 

6 Tips to Protect Your Business From a Cyber Attack

Large scale cyber attacks on multinational corporations including Ashley Madison, eBay, Target and Sony have dominated news headlines in the past 12 months. Awareness of cyber crime has increased, yet smaller businesses remain unprepared for such an occurrence as they assume it’s unlikely to happen to them. In reality, small to medium sized businesses are actually more at risk than their larger counterparts, and unlike bigger companies, smaller businesses are unlikely to survive a breach.

The average annual cost of cyber attacks on small and medium-sized businesses amounted to almost $200,000 in 2010 [Symantec, 2011], with 60% of small businesses in the USA closing within six months of a cyber attack [U.S. House Small Business Subcommittee on Health and Technology]. In the digital age where cyber security is a rising concern, how can you best protect your business against the crippling effects of an attack of this nature

1. Implement a Firewall

Firewalls control the data coming in and out of your computer systems from external sources in order to prevent unauthorised access to your network, so it’s important to have an effective one in place. A lot of operating systems come with an in-built firewall but it makes sense to invest in a reputable and dedicated firewall to ensure optimum protection. There are a huge amount of Firewalls available so spend some time finding one that best suits your business needs. Invest in implementing HTTPS or a security certificate on your website to protect customer data, especially if you operate an e-commerce site.

2. Antivirus software

Antivirus software should be installed on every business computer and device. This protects against malicious software that can infiltrate your computer, which can damage your systems, expose your computer and data, and interrupt business activity. You can find different levels of Antivirus software at a variety of price points, so look around to find one that’s best for you.

3. Protect your Wi-Fi

Wi-fi networks provide an ‘in’ for a number of cyber attackers. Ensure your business wi-fi doesn’t broadcast a network name and is therefore invisible to outsiders. In addition, any wireless network should be encrypted to prevent any invasions.

4. Update Passwords

Updating all of your business passwords every few months is a simple way to keep your data secure. Ensure any password you use is strong, by using at least 8 characters made up with letters, numbers and symbols and avoid using obvious personal information.

5. Educate Employees

Communicating risks to all of your employees is vital in protecting your business against a cyber attack. Employees should be aware of their responsibility to protect data held within your company and fully trained in digital security including best practice for web browsing and using email. A written policy on data security should be put in place.

6. Cyber Insurance Policy

Cyber insurance packages are widely available and can cover the key issues in relation to cyber security. There are a wide range of policies available to suit your individual business needs and cover a range of cyber related issues including; privacy protection, breach costs, business interruption, cyber extortion and hacker damage.

These preventive practices are essential for every small to medium sized business operating in today’s digital environment. Security is paramount, and it doesn’t take long to implement a risk reduction strategy that can protect you, your business and your employees from the potentially crippling consequences of a cyber attack.

The list of tips above is not exhaustive and we recommend that you obtain further advice from a qualified IT provider to fully protect your business.

Disclaimer

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.

37 Million Adulterers’ Data Exposed

37 Million Adulterers’ Online Dating Website Ashley Madison Becomes Latest Victim of Cyber Crime.

On July 21st, news broke that Ashley Madison had been hacked, with the culprits obtaining personal records that were saved on the website’s systems. These records have since been released online, which has caused significant trauma for several of the website’s clients who have used the site to facilitate an extra marital affair.

The number of cyber attacks is growing steadily year on year, with online dating site Ashley Madison becoming the latest high profile victim of cyber crime.

The hackers have stated that the motivation behind the attack stemmed from the unethical practices of the website; claiming it had extorted users by offering a ‘paid delete’ feature that did not exist. The feature supposedly allowed users to remove all traces of information that was held on the site, earning the company over $US1.7 Million in revenue.

Owners of the company, Avid Life Media have been working with the American police to find the hackers and have had to adjust their policies for deleting information at the user’s request. Having already accumulated significant costs as a result of the hack, it seems this could just be the tip of the iceberg for the company, which has a mammoth task ahead in order to salvage what’s left of it’s reputation and minimise the backlash from disgruntled users.

But the risks of the Ashley Madison hack are even more far-reaching:

“Companies who have threat research and intelligence analysts should be looking at this data to see what user names or email addresses are related to their organisation,” said Stephen Coty, security expert at IT security firm Alert Logic.

“They should modify their email filters to start monitoring any emails coming through that reference Ashley Madison, so that they can find if somebody is trying to coerce an employee to go ahead and release company secrets.”

This case highlights the increasing occurrences of Cyber Crime, which poses a significant threat for today’s business owner. With the ever-increasing intelligence of hackers and sophistication of malware programs, it seems that no business is safe against the threat of a Cyber Attack.

It is important to analyse your current digital activity and implement strategies to make your systems less likely to be infiltrated. Although you cannot guarantee that your business will not be the victim of a cyber attack in 2015, you can insure against it with a Cyber Insurance policy.

Cyber insurance has become a key consideration for any business when analysing their risk management. Contact me directly for more information about how a Cyber Insurance policy can protect your business and put your mind at ease.

Disclaimer

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.