Cyber insurance

Cyber insurance


Here is a tip for something to consider.

A while ago, a client asks to speak to me about his shop data security. Something was funny, weird stuff was being reported but he could not narrow it down specifically or put a pattern to it. So we discuss many of the software packages and security procedures available to them.  Some of these were implemented.

A few days ago he calls me and somehow he feels that it is still happening. The problem with cybersecurity is that you never know whether something is wrong and its impossible to know for sure that everything is okay.

An example of what can happen is that a retail shop emailed customers information on a coming sale in the store. They accidentally instead of sending a copy of the flyer, they sent out their customer list produced from their point of sale software. By the time the courts and lawyers were finished, it costed them $150,000. Plus a lot of goodwill with their customers and time lost in courts. In today's world, that was cheap. No computer software or procedures can stop something like this accident from happening. 

If this is of concern to you, one option you may want to consider for your shop is cyber insurance. The cost is fairly high but it might give you some peace of mind.

If you want a guess what it could cost you, as a general rule, a data breach costs the retailer about $140 an account if it goes to court. If you have 2,000 customers on file and your shop is found responsible for the information being released that is average of $288,000 penalties. Now add legal fees, in Australia somewhere between $100,000 to a million and you get an idea why my client was concerned.

You also get an idea of why we are concerned about the data flow between newsagents and some publication distributors.




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