How Cyber Insurance Protects Small Businesses

At long last, the wider public is starting to realise that hackers aren’t hooded movie villains – they’re real people doing real damage across the globe, especially in New Zealand and especially to small businesses.  

Hackers can be very targeted with their approach and small and medium sized businesses They are increasingly bearing the brunt of the attacks, because they often lack the kind of robust security systems and back-up storage capabilities that larger enterprises have access to.  

This makes them especially vulnerable to the cyber-ransoming, where criminals take control of a server or data and demand cash or crypto-currency in exchange for a release of the information or a return to service. 

Let’s take a look at Cyber Liability insurance* and how it can help to protect your small business from some of the unwanted challenges of the online world! 

What is Cyber Liability insurance

You may have heard the terms cyber -crime, cyber-attacks, hackers, but what does it mean to you as a small business owner and how can Cyber Liability insurance help to protect you? We explain some of the key ways   Cyber Liability insurance is designed to protect you below. 

Cyber liability insurance is a type of business insurance which protects your business 

against both the legal costs and expenses related to cybercrime 

incidents. Your coverage may generally include cover for expenses and restoration costs r  relating to the 


  • Data breachesincluding theft or loss of client information

Network Security Breaches 

  • Business interruption costs
  • Forensic investigationinto the cause or scope of a breach
  • Data recoverycosts
  • CyberExtortion 
  • Crisis management costs (toprotector mitigate damage to yourbusinesses reputation resulting from a cyber event) 
  • Loss andLegal costs, including fines and penalties resulting from a third party claim for data or network security breach against your company  



Who needs Cyber Liability insurance*? 

 Cyber Liability insurance is there to help any businesse that uses technology in its daily operations,- whether sending an email, storing data online, receiving wire transfer payments or using software in its day to day operations . With more and more businesses embracing the magic of technology, it makes it likely that most types of businesses rely on some form of digital technology to help get the job done. 

For a small business, the consequences of a cybercrime event could be devastating. Not only could they lose client data, critical operational information and network capability, but the damage an attack could do to a business’s reputation in the community could be just as harmful. 

This is where Cyber Liability insurance provides a crucial safety net for SMEs in NZ, as it helps protect  businesses against the threats and exposures associated with  data breaches, system interruption and cybercrime including hacking and theft  


The types of businesses that use technology are extremely varied, but here are a few  examples of some businesses that may be impacted by a cyber-attack. 

  • Businesses using computers, phones and other electronic devices to run their business and to help communicate and connect with their clients are at risk of a system outage caused by a cyber event. Imagine trying to run a business without these tools! The business downtime and potential data loss could be devastating A   
  • Retailers and hospitality industries are prime examples of the types of businesses that rely on technology such as EFTPOS machines and websites for online sales to help sell and process customer sales. With these out of action due a cyber attack the financial impact could be devastating. 
  • Manufacturing businesses rely heavily on machinery to get the job done, a virus or attack on the systems used to help operate the machines could cause major disruptions to the production of stock. 
  • Professionals who store sensitive client information and details in their databases are also at risk if a potential privacy breach were to occur. 


What type of attacks can result in Cyber Liability claims? 

As technology increasingly becomes more advanced, cyber attacks by hackers are getting more cunning and sophisticated with their types of attacks. Here are some of the other types of incidents that can result in a Cyber Liability claim. 


  • Website hijacked and defaced 
  • Computers infected with viruses/malware 
  • Data held to ransom 
  • Wrong email attachments, leading to a cyber incident 
  • Lost or stolen devices 


How to get Cyber Liability insurance? 

 While Cyber Liability insurance won’t prevent an attack, it can help give you peace of mind knowing that you have some form of protection in place if hackers were to impact your business. While you may take all the care in the world to protect your business, unwanted online challenges can strike and cause havoc when you least expect it. 

There is no magic bullet for preventing cybercrime, and even the best security systems are vulnerable to infiltration. However, a good Cyber Liability policy as part of a broader business insurance plan will go a long way towards ensuring small and medium sized businesses in NZ are able to survive cyber attacks now and in the future. 

There’s plenty to think about when running your own business, we can assist you getting Cyber Liability insurance sorted so you have one less thing to worry about. 

At BizCover, we understand many types of small businesses and their unique business insurance needs. Insurance products purchased through BizCover are there to help your business when you need it most. 

Our online platform takes the drama out of shopping around for your insurances, delivering quotes from selected leading New Zealand insurers in minutes. We don’t believe in making things difficult, so there’s no paperwork required or messy forms to fill out. Experience insurance made easy today and see how we can help protect your business.  


* This information is a general guide only and does not take into account your objectives, financial situation or needs.  As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice. 

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