Cyber Liability Insurance: A Must-Have for SMEs in the Digital Age.

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The advent of AI-generated content is making it even more difficult to detect and prevent cyber threats, as cybercriminals use more sophisticated methods to create malware code, bypassing ethical guidelines. The Actuaries Institute estimates that only one in five SMEs is covered for cyber liability insurance, even though they face the same threats as large businesses.

Although large companies can afford to employ entire IT support teams and hire crisis communication and legal teams to deal with the fallout of a cyber attack, SMEs often lack the means to implement comprehensive protection. Without insurance coverage, SMEs risk losing money, data, and reputation, which can be emotionally isolating for business owners. As cyber risks become omnipresent and dynamically unpredictable, it is crucial for small businesses to consider implementing best practice cybersecurity and response plans.

Mason explains that 95% of cyber incidents happen due to human error, such as losing a laptop, leaving it unlocked, or conducting work from public Wi-Fi. She recommends SMEs to follow best practices in cybersecurity, such as updating software and patches, using data encryption, upgrading devices if the manufacturer has discontinued support for the software, enforcing strong user credentials and multi-factor authentication, and educating employees on security practices to avoid data breaches.

Cyber liability insurance can assist in the recovery process through incident response, defence costs, reimbursement for business interruption, cyber extortion damages and expenses, and data and system recovery costs. Choosing cyber liability cover can also force a business to reassess its foundational risk management processes and adopt best practice cybersecurity practices.

Published:Thursday, 16th Mar 2023
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

Inattention and Speed: Key Factors in Major Truck Crashes

28 Jan 2026: Paige Estritori

The National Truck Accident Research Centre (NTARC) has released its latest Major Incident Investigation Report, shedding light on the predominant causes of significant truck crashes across Australia. The findings reveal that human factors, particularly inattention, distraction, and inappropriate speed, continue to be the leading contributors to these incidents. - read more

TAL's Health Sense Plus Now Covers Income Protection Policies

27 Jan 2026: Paige Estritori

In a strategic move to enhance the value of its offerings, TAL has announced the expansion of its Health Sense Plus program to encompass income protection insurance. This initiative, effective from 8 August 2025, aims to incentivise proactive health management among policyholders by providing premium discounts. - read more

Rising Mental Health Claims Reshape Australia's Insurance Landscape

27 Jan 2026: Paige Estritori

Australia's insurance sector is experiencing a significant shift as mental health conditions become the predominant cause of total and permanent disability (TPD) claims. Recent data from the Council of Australian Life Insurers (CALI) indicates that mental health issues now account for nearly one-third of all TPD claims, marking a substantial change in the industry's claim patterns. - read more

APRA Calls for Reforms in Income Protection Insurance Sector

27 Jan 2026: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has raised concerns about the sustainability of income protection insurance, following industry losses amounting to $2.5 billion over five years. APRA has urged life insurers to implement reforms to enhance the viability of these products and ensure they continue to meet policyholders' needs. - read more

Marinex Underwriting Sets Sail in Australian Marine Insurance Market

27 Jan 2026: Paige Estritori

In a significant development for Australia's marine insurance sector, Rhodian Group has announced the launch of Marinex Underwriting, a new agency dedicated to providing specialised marine insurance products tailored to the Australian market. This initiative marks Rhodian's third agency launch, following the establishment of Halo Underwriting and Batch Underwriting in previous years. - read more

Click for more Insurance News

Compare Public Liability Insurance Quotes

If you are renewing your public liability insurance in the near future,, it might be well worth your while to shop around. Or, better still, let us do it for you. Much has changed in the public liability insurance market following recent events and there are many new policies and special deals on the market that were not available even one year ago. A single 3-minute online enquiry will give you access to multiple quotes from multiple insurers via our national broker panel, guaranteed to save you time and money!!. So, why not give us a go … free service, no obligation!

... get a quote ...