Cybercrime is on the rise in Australia. Recent national reporting by Australian Signal Directorate shows more than 84,700 cyber incidents in the past financial year alone. What’s more concerning? The report also states that the vast majority of cybercrimes go unreported, meaning that the real number of affected businesses is much, much higher.
The numbers are alarming on their own, but the story they really tell is that cybercriminals are becoming more sophisticated, more aggressive, and more opportunistic. For businesses of all sizes, this raises an important question: are you protected if the worst happens?
The rising cost of cyber attacks
The impact of a cyber attack goes well beyond immediate disruption. The average cost per incident has climbed to around $80,850 for businesses, with small businesses still facing a significant average of $56,600. For medium and large organisations, the numbers increase sharply, up to $202,700 per incident.
These costs often include:
- operational downtime
- emergency IT recovery
- data restoration
- customer notifications and privacy compliance
- reputational damage
- legal exposure
For many businesses, absorbing an unexpected cost of this scale can be almost impossible, and in some cases, financially devastating.
Why are attacks increasing?
It’s all got to do with the rise in credential-theft activity. Cybercriminals are increasingly purchasing stolen usernames and passwords from the dark web, then using them to access personal email, financial accounts, and internal business systems.
Distributed denial-of-service (DDoS) attacks are also on the rise. These attacks overwhelm systems with traffic, making key services unavailable and causing major operational disruption.
How cyber insurance can protect you
Cyber insurance provides a financial safety net to help your business recover quickly and minimise disruption in the wake of a cyber attack.
Depending on your policy, cyber insurance can cover:
- business interruption costs
- data restoration and IT forensics
- legal fees and regulatory penalties
- customer notification and crisis communication
- cyber extortion and ransomware events
- third-party liability
With attacks increasing in both frequency and sophistication, this type of protection is no longer a ‘nice to have’ – it’s becoming a crucial component of business continuity.
How we can help
At Cutcher & Neale, we understand that protecting your business goes beyond day-to-day operations. Our insurance advisors work closely with you to assess your exposure, tailor a strategy and ensure you’re prepared for the unexpected.
We’re here to provide comfort and clarity around your insurance needs, helping you safeguard the business you’ve worked hard to build.
If you’d like to review your current cover or explore your options, our team is ready to assist in making your insurance journey pain-free. Enquire now.
Andrew is the Director of Cutcher & Neale’s General Insurance division. He has been an advisor in the industry for over 20 years ensuring his clients have the best value and personalised coverage possible.
Andrew has worked in many areas of insurance, including domestic and international brokering. His specialties cover personal and business insurance, medical professionals, residential and commercial real estate, sports, and construction.
