Tag: cyber insurance

KEEPING UP WITH THE WORKPLACE REVOLUTION

Virtual-Assistant-keyboard

New Liabilities for Virtual Assistants

Have you noticed the significant shift in the workplace lately, as managers begin to appreciate the value of offsite services from Virtual Assistants?

The benefits of being a Virtual Assistant include greater flexibility, spending less time and money commuting, a happier, more productive day and a chance to be your own boss.

For business, the cost of technology and telecommunication services to allow for remote work has also never been cheaper. This allows for greater flexibility in workforce management and reduced overheads such as office rental, equipment, superannuation and human resource management to name just a few. The business can now select the best-skilled worker for the job, no matter where they live.

An added benefit for the business is it can limit liability by contracting out the work to a Virtual Assistant. By taking on the work, a VA owes a “duty of care” to the business in the performance of the services. Any negligence, mistake or error in the services provided could result in a claim against the Virtual Assistant. For this reason, a Virtual Assistant should consider these insurance policies to protect themselves properly:

Professional Indemnity Insurance

This is likely to be the greatest risk for Virtual Assistants who provide professional services. The policy will cover legal costs to defend against allegations of a mistake in the advice provided and any resulting damages award or settlement amounts agreed to.

Here is a typical claim example:

A Virtual Assistant provides website management and social media updates on behalf of a business. A third party alleges the content of the post is misleading and deceptive and the third party sues the business. The business, in turn, joins the Virtual Assistant as a defendant to the action or the business may seek to redeem all associated costs and expenses from the Virtual Assistant after the claim is finalised.

Cyber Liability Insurance

Cyber liability is the fastest growing insurance risk in Australia. The policy will cover claims where a loss of personal data results in a breach of privacy or a hacker attacks the Virtual Assistant system.

Here is a typical claim example:

A Virtual Assistant provides bookkeeping services on behalf of a business. The Virtual Assistant’s system is hacked by a cyber criminal and the personal records of the business’s clients are stolen. The hacker also inserts malware to encrypt the system and a virus, which is passed back to the business and infects their system also. A cyber policy will cover the cost of a ransom payment, the costs to restore and recollect any lost data, the costs to remove malware and fix your system and any business your system infected and the loss of income during the downtime, as a result of the hack.

Public Liability Insurance

Public liability insurance covers the Virtual Assistant if they cause bodily injury or property damage to a third party. However, most Virtual Assistants wouldn’t usually be that hands-on nor have foot traffic. This presents a significantly lower exposure and would result in greatly reduced insurance costs. It’s important to remember that many domestic home insurance policies will specifically exclude any claims resulting from business-related services.

Here is a typical claim example:

A work-related delivery is sent to your home, it could be documents, products, samples etc. The delivery person falls and suffers a serious back injury as the handrail on the stairs to the front door gives way. The delivery person sues the Virtual Assistant for bodily injury claiming negligence for a poorly maintained and unsafe handrail. The policy would cover legal costs and damages award against the Virtual Assistant

Some businesses will require the Virtual Assistant to maintain a minimum level of insurance cover before they can even commence working. We expect this mandatory requirement to keep growing, as the use of Virtual Assistants continues to grow with it.

Each individual Virtual Assistant’s insurance needs will be unique and we’ll work with you to find the best possible protection.

For a FREE ‘’no obligation’’ discussion about your insurance needs, get in touch with Amy O’Sullivan from Adroit Insurance Group on amyo@adroitig.com.au or call 03 5331 8317.

How will your business be affected by new data breach laws?

This problem is going to need everyone's imput

Like you, many consumers are concerned about how their personal information and valuable data is being used in this tech savvy age. As a result, Parliament has passed a new bill for mandatory data breach notification laws.

This bill is an important step to highlight the importance of consumer data protection although there have been some fears in the business community about the consequences and potential costs associated with these new laws.

Any business that suffers an eligible data breach will now have to report the matter to the Privacy Commissioner and any party whose data has been compromised must be notified by the business. An eligible breach can include unauthorised access, disclosure or loss of personal information held by a business which is likely to result in serious harm to the individual or customer which that data relates to.

“Cyber exposure is the fastest growing risk for SME businesses and Deloitte expect there will be 10 million cyber attacks in Australia in 2017,” says Adroit Professional Risk specialist, Anthony DiFlore.

Experts estimate a data breach could potentially cost businesses between $150 to $350 per record. If 1,000 records were breached for example, then the cost could skyrocket anywhere from $150,000 to $350,000.

The large costs associated with a data breach can potentially include:
– legal fees to manage an investigation by the Privacy Commissioner
– fines imposed by the Privacy Commissioner of up to $340,000 against directors and executives personally or $1,700,000 against the company.
– costs of forensic experts to find how the breach occurred.
– costs to fix IT systems and upgrade security.
– ransom payments made to cyber criminals to unencrypt data.
– loss of clients, new contracts and revenue due to adverse media.
– public relations costs.
– civil proceedings from those affected, including legal costs and damages.
– financial fraud and any ongoing credit monitoring costs.

The list goes on. Those affected by the legislation included any business with over $3 million in turnover, smaller firms that handle sensitive client information like healthcare professionals and most government agencies.

A business that is not prepared and uninsured for a data breach is risking significant financial loss should one occur.

To ensure your business is protected, download our full Cyber Security Essentials kit here, or get in touch with Adroit Professional Risk, our cyber and privacy experts, on 1300 6923 7648.

Don’t Be Wrong-footed By HR Slip-ups

Complaint form

HR slip-ups are costly. No matter how stringent the HR processes you can never completely avoid the risk of claims against your company by employees.

Continue reading

Get ahead on cyber security

cyber-attack

From what newspaper reports have to say, the owners of small businesses could be forgiven for thinking that cyber attacks are something for large corporates and governments to worry about. Unfortunately the opposite is true.

Continue reading

Cyber crime, is your business covered?

 Cybersecurity01_Web

The following blog comes courtesy of one of our expert brokers, Damon Edwards and was featured in the Ballarat Courier

Today’s article focuses on the fastest growing crime in the world – cyber crime. We’ll talk about the increase in incidents and what you can do to fully protect yourself.

Continue reading