Whitbread's Claims Manager Receives Women In Insurance Award for Excellence 2019
Whitbread Insurance Brokers are excited to announce our very own Renee Cassidy as the recipient of the Women In Insurance Award for Excellence, 2019.
As the principal of a Strata Management business, you likely spend most days ensuring the needs of your strata clients are met. But when was the last time you stopped for a second to reconsider the needs of your own business, and any emerging risk exposures that could pose a serious threat to your operations?
Cybercrime has been a hot topic in the news recently, making headlines around the world.
Whether you are a multinational company or not, being hacked and having sensitive data stolen is a risk that could seriously impede your ability to operate as a business, whilst also exposing your assets through litigation.
Further to Privacy Act changes in 2014, the introduction of the Notifiable Data Breach (NDB) Scheme on the 22nd of February 2018 now sees even higher fines imposed on individuals and businesses if they fail to report serious data breaches to both the Office of the Australian Information Commissioner (OAIC), and to all individuals whose information may have been breached.
Cybercrime is becoming increasingly common among smaller businesses because they present a much easier target for cybercriminals. In 2016, roughly 1 in 5 SME’s were targeted by a cyber-attack (i).
As an SME business that stores significant amounts of client data, this risk applies to you!
You sit down to work one morning, and find that you cannot access any of your client data. Your computer system has been hacked into by cybercriminals, and your client records have been stolen, encrypted, and held to ransom. In other words - you are unable to access any of the data you need to run your business.
The cybercriminals demand you pay a ransom of $10,000 to get your data back, and you pay because you can’t operate without it.
After your data has been unlocked for 24 hours, the cybercriminals breach your system once more, encrypting your data again, and request another $10,000.
Like most victims of crime, you notify the police, but what comes next?
Amendments to the Privacy Act in 2014 saw the introduction of the Australian Privacy Principles (APP’s) which governed the way companies handled personal information, and introduced significant fines and penalties for the mishandling or loss of personal information.
This new legislation means it is now mandatory for you to notify the OAIC and your clients in the event of a data breach. It also sees fines and penalties increase if you fail to comply.
Your business can be fined;
- up to $1.8 million for breaching the Privacy Act
Directors can be fined;
- up to $360,000 for individuals (ii)
Over 70% of businesses that suffer a major data loss shut down within 24 months (iii).
While you likely have a Business Insurance policy and Public Liability Insurance – neither of these will protect you from the cost of incurring personal fines and penalties or litigation if your client records are breached by cybercriminals.
We consider Cyber Liability an essential Insurance policy, and urge you to ask your Whitbread broker about this further, to help generate greater certainty for the future of your business.
A Cyber Insurance policy can cover:
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of personal advice. Please contact Whitbread Associates Pty Ltd ABN 69 005 490 228 Licence Number: 229092 trading as Whitbread Insurance Brokers for further information or refer to our website.
The Victorian Branch of Women in Insurance presented Renee with this prestigious award at their annual AGM in August.