More SMEs are taking up BizCover's recently enhanced cyber coverage as the realities of being exposed to the ever-changing hydra-beast of cybercrime are better understood
This article was produced in partnership with BizCover.
BizCover’s new cyber offerings launched late last year are proving popular as more people realise that they can’t afford not to take steps to protect their business in the wake of several high-profile cyberattacks late last year.
“It’s been an overwhelming success. We have seen a further 40% increase in enquiries about cyber insurance since December,” says Jane Mason, head of product, channels and risk at the small business insurance provider.
While the headlines naturally focus on firms like Optus, Medibank and more recently Latitude Financial Services, the reality is that many cybercriminals are opportunists looking for easy targets like SMEs to maximise reward versus the effort expended.
This makes mortgage brokers – often small businesses with less stringent defences and access to highly valuable financial and personal information – prime targets for attack.
BizCover updated its existing Cyber Liability offering in late December.
The offering covers a wide range of cyber risks such as data breaches, cyber-attacks as well as an option for phishing, and includes business interruption and cyber incident response services for mortgage brokers to consider.
The cost-benefit makes sense
Many mortgage brokers are conscious of the potential dangers of not protecting themselves against cyberattacks, but some of them have been hesitant to purchase additional insurance because of financial constraints.
However, in light of the impact of recent cyberattacks and data revealing that the average cost per cybercrime incident for SMEs surged to $63,500 over the 2021-2022 financial year, more SMEs are re-evaluating their cost-benefit analysis.
Compared to the estimated monthly Cyber Liability insurance premium of $110^ for the Property and Real Estate industry through BizCover, the cost of a cyber incident is significantly higher. For mortgage brokers who store sensitive client information and handle high-value transactions, paying for Cyber Liability insurance may be a reasonable solution to ensure protection.
“Cyber insurance is fast becoming an important type of cover to consider rather than a nice-to-have in today’s digital age," says Mason.
The enhanced offerings come at a critical time given the pressures that small businesses in general face from inflation as well as the property market funk squeezing loan volumes at many brokerages.
“We were extremely pleased to be able to help occupations like mortgage brokers with their cyber risk management”,” says Mason.
An ever-evolving battlefield
The increase in the number and sophistication of cyber threats comes as crimes like extortion, espionage, and fraud are now easier to replicate at a greater scale.
Over 3.8 million Australians were exposed to financial advice scams in the 2021-22 financial year, with hackers using a variety of social engineering attacks to gain access to sensitive information and devices.
“Cybercriminals often impersonate employees or people in authority to gain the trust of unsuspecting victims. This can be done by text message, over the phone, email, online, and even by letter,” says Mason.
“If the information or fund fall into the wrong hands, it can result in significant financial losses and reputational damage to the brokerage,” says Mason.
Cyber coverage tailored to the times and the customer
BizCover’s Cyber Liability insurance is designed to protect small businesses against both the legal costs and expenses, including compensation payments, related to cyber incidents.
While it differs between each policy on the platform, cyber insurance may generally include cover for expenses and legal costs relating to the following:
- Data breaches
- Theft or loss of client information
- Business interruption costs
- Forensic investigation
- Data recovery
- Extortion
- Fines and penalties
- Crisis management costs (to restore your reputation after an attack or data breach)
- Legal costs from any ensuing civil action taken against your business
The insurers also offer optional extension covers such as Contingent Business Interruption, Social Engineering, and Cyber Fraud policies.
It’s a product that has been designed to meet a contemporary threat.
“The risk of cybercrime is a moving beast and we wanted to deliver products that help cover brokers from a broad range of risks,” says Mason.
Cyber defence needs to be a priority for mortgage brokers who have become ever more digital-dependent as a result of tech advances that accelerated during the pandemic years.
The most effective means of protection against cyber threats continues to be implementing robust and up-to-date security measures, but staying ahead of the criminal curve is a tough call for even the most watertight of operations.
“This is why the bolstered cyber insurance offering from BizCover is great news for Australian mortgage brokers,” says Mason.
*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2023 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769
^Average total insurance premium includes total policy costs from all BizCover channels.
BizCover is Australia's largest online business insurance service for small businesses. BizCover allows small business owners to compare and get quotes for multiple products from market-leading insurers, providing a simple experience through one online platform. Over 180,000 Australian SMEs currently protect their business through BizCover's proprietary platform across thousands of occupations. To date, BizCover has sold over one million business insurance policies using the technology in Australia, New Zealand and the US.
