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

Allianz Partners Introduces Tailored Cruise Travel Insurance for Australians

22 Dec 2025: Paige Estritori

In a strategic move to cater to the growing number of Australian cruise enthusiasts, Allianz Partners has unveiled a cruise-specific travel insurance product in collaboration with Norwegian Cruise Line (NCL). This initiative aims to provide comprehensive coverage tailored to the unique needs of cruise travellers. - read more

Australian Insurers Face Challenges in Cybersecurity Readiness

22 Dec 2025: Paige Estritori

Recent findings from the PwC Insurance Banana Skins Survey reveal that Australian insurers are trailing behind their global counterparts in cybersecurity preparedness. This lag is particularly concerning given the rapid evolution of cyber threats, especially those enhanced by artificial intelligence (AI). - read more

Australian General Insurers Report Record Profits Amid Premium Hikes

22 Dec 2025: Paige Estritori

Australia's general insurance industry has reported a remarkable financial performance, achieving a 19% return on equity (ROE) for the 2025 financial year-the highest in a decade. This significant milestone reflects a combination of strategic premium increases and favourable market conditions. - read more

Australian Life Insurance Sector Anticipates Steady Growth Amid Economic Recovery

22 Dec 2025: Paige Estritori

The Australian life insurance market is on a trajectory of steady growth, with projections indicating an increase in gross written premiums (GWP) from $26.2 billion in 2025 to $30.5 billion by 2029. This represents a compound annual growth rate (CAGR) of 3.9%, reflecting a positive outlook for the sector. - read more

ICA Advocates for Overhaul of Civil Liability Laws Amid Rising Insurance Premiums

22 Dec 2025: Paige Estritori

The Insurance Council of Australia (ICA) has recently released a white paper highlighting the urgent need for reforms to state and territory civil liability laws, which have remained largely unchanged for nearly 25 years. These outdated laws are contributing to significant increases in public liability insurance premiums, affecting a wide range of businesses across the nation. - 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 ...