With more and more businesses opting to operate their business activities online comes the risk of increased online cybercrime, and unfortunately accountants are no exception. Cyber criminals don’t discriminate when it comes to the type of business they are after and are increasingly becoming more advanced in their styles of attacks.
In our concise guide, we take a look at Cyber Liability insurance* and how it may be something to consider as part of your accounting business’ protection plan. We leave out the lingo and cut straight to the important stuff so you can get on with crunching those numbers!
What is Cyber Liability insurance?
You may have come across a variety of different types of coverages like Public Liability insurance* for accountants and even Charted accountants insurance, but have you taken the time to look at Cyber Liability insurance?
This is a quick overview of some of the basics of Cyber Liability insurance and what it provides coverage for.
Cyber liability insurance is a type of business insurance product which protects your business
against both the legal costs and expenses (including compensation payments) related to cybercrime
incidents. Your coverage 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 businesses reputation after an attack or data breach)
• Legal costs from any ensuing civil action taken against you or your company
What is typically covered by a Cyber Liability insurance policy?
If you are unsure of what your specific Cyber Liability insurance policy covers check your Product Disclosure Statement or contact your insurance agent to obtain the details.
- Investigation and data recovery costs
- Business interruptions costs
- Fines and penalties
- Extortion costs
- PR and crisis management costs
Why accountants might consider Cyber Liability insurance?
As an accountant, you’re no stranger to attention to detail and being careful with sensitive customer information. The reality is, cyber-attacks and data breeches can occur in the click of a mouse, even if you take all the care in the world with your customer information.
Cyber Liability insurance provides an extra layer of protection for your accounting business and its day-to-day operations. Simple things like opening your emails could quickly turn sour if you accidentally click on a scam link or document.
The impact of a claim for a cyber-attack, especially when multiple client’s and their data are exposed could be enough to devastate the hard-earned finances of your accounting business, possibly sending you out of business for good.
Cyber Liability insurance is a safeguard that gives you peace of mind and protection for when your business may least expect to it.
Challenges of protecting your accounting business from cyber crime
While the inconvenience like the financial impact of a cyber-attack or breach on your business may be the first things to come to mind, there are other challenges which may consistently impact businesses from cybercrime.
The Reserve Bank of New Zealand identifies that some of the issues maintaining resilience from cyber-attacks as:
- The ever-evolving nature of technology and cyber threats
- The unpredictable nature of cyber-attacks and breaches with the potential of a cascading effect that are difficult to control and predicti
Many cyber criminals also create attacks with the goal of playing on emotions. The sophistication of these attacks goes as far as creating localised emails sometimes written in Māori. They will also often include convincing campaigns that mimic banks, charities and government agencies.ii
When you do the math getting accounting insurance like Professional Indemnity insurance*, Public Liability and Business Insurance* should be easy and drama free. We understand accountants, and how important time is when you’re running your own business. So, leave the shopping around for your next policy with us, while you get back to helping your clients.
Visit bizcover.co.nz and get insurance for contractor business without the hassles so you can get on with your day. If you’d prefer to pick up the phone and chat you can find us at 0800 249 268.
*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 Limited.
