Your business needs cyber security insurance, here’s why

3 min read 30 August 2022

Last year, South Africa had the third highest number of cybercrime victims in the world resulting in losses of R2.2 billion. In a world of data breaches and hacks, cyber security is important for everyone with an online presence, more so for businesses with the responsibility to protect customers. The question is, who protects the businesses? This is why cybercrime insurance is a vital part of making any business future fit.

Philippa from Santam says, “With the world changing in the way it is, it is important that companies stay ready for what lies ahead. One great advantage of having cyber insurance is that it enables a business to bounce back from any business interruptions and financial loss incurred as a result of cybercrime. Cyber insurance also helps with the practical side of getting IT experts to restore systems, recreate data and pre-empt new threats.”

Who should be concerned about cybercrime?
In today’s digital world, all organisations, big or small, including SMEs, are at risk of a cyberattack. The advancement of technology and remote work has left many people vulnerable to crimes like hacking, data theft and damage, and even industrial espionage. In short, everyone must be concerned about cybercrime. These are some of the most affected industries:

The implications and risks of not having cyber insurance
The average small business hack attack can cost your company anywhere between R50 000 to R250 000 and will require you to manage POPI regulations, keep employees updated on proper digital hygiene and constantly back up your data. Furthermore, if your business possesses or has experienced any of the following, you are at risk of cyberattacks and need cyber insurance:

The beauty of having cybercrime insurance:
Peace of mind. Ultimately there is no price one can put on that. As a business moves more towards e-commerce and an even greater online presence, it becomes increasingly important and more prudent to be protected from cyber criminals.

Cyberattacks without insurance can result in:

Knowledge is power when it comes to matters of cyber security. Equip yourself as a business and protect and empower your people with the peace of mind that comes from cyber insurance.