October marks Cyber Security Awareness Month, a timely reminder that cyber crime is one of the fastest-growing risks for small and medium-sized enterprises (SMEs).
Many small businesses in Western Australia assume that cyber attacks only target large corporations. Unfortunately, the evidence shows the opposite. Criminals now actively target SMEs because they often have weaker security systems, limited IT resources, and lower awareness of how to respond when things go wrong.
At Delmont Insurance Group, we work with business owners across Perth and wider Australia to help them understand their digital risks and protect their operations through tailored cyber insurance and practical risk-management strategies.
The Rising Cost of Cyber Attacks in Australia
According to the Australian Cyber Security Centre (ACSC), a cyber crime is reported every six minutes in Australia. Small businesses now lose an average of $49,600 per incident, while medium businesses lose approximately $62,800.
The Community Broker Network (CBN) has also reported that more than 21,000 cyber incidents were recorded in just three months—a clear sign that the frequency and sophistication of attacks are escalating.
For SME owners, these figures translate into very real consequences: lost income, disrupted operations, damaged client relationships, and in some cases, complete business closure.
Common Cyber Threats Facing SMEs
A cyber attack can take many forms. The most common incidents affecting small business owners include:
- Ransomware: Hackers encrypt your data and demand payment for its release.
- Invoice or payment diversion fraud: Criminals intercept legitimate email chains to redirect funds.
- Data breaches: Customer or employee data is stolen, exposing you to regulatory and reputational risk.
- Malware and phishing: Staff are tricked into clicking malicious links or providing login details.
- System downtime: Operations are paralysed while systems are restored.
- Reputational harm: Customers and suppliers lose confidence in your business.
These attacks are not only disruptive but can also trigger legal obligations to notify clients or regulators, depending on the severity of the breach.
What Cyber Insurance Covers
Many small businesses assume that their standard business or public liability policy will respond to a cyber event. In reality, most general insurance policies exclude cyber-related losses.
A dedicated cyber insurance policy provides comprehensive financial protection and immediate response support when an incident occurs.
First-Party Losses
These relate to the direct financial impact on your business:
- Loss of income during system outages
- Cyber-extortion and ransomware payments
- Data restoration and recovery costs
- Crisis communication and public relations expenses
Third-Party Losses
These cover claims made against your business by others:
- Legal defence and compensation for privacy breaches
- Regulatory fines and penalties (where insurable)
- Electronic media liability, including defamation or copyright infringement
Additional Benefits
- 24/7 access to cyber incident-response specialists
- IT forensic investigations and data recovery
- Legal and public relations support to manage reputational fallout
In short, cyber insurance provides the financial and professional resources to help you recover quickly and maintain customer confidence.
Ten Practical Ways to Reduce Cyber Risk
Insurance forms only part of a wider risk-management strategy. Drawing on insights from the CBN “Hacking the Hacker” report, these ten measures can significantly reduce the likelihood of an incident:
- Conduct a cyber risk assessment
Identify your critical systems, sensitive data, and potential vulnerabilities. This helps prioritise investment in security and informs your insurance cover. - Keep software updated
Enable automatic updates for operating systems and applications. Many attacks exploit outdated software. - Use strong authentication
Implement multi-factor authentication (MFA) across all systems. This simple step blocks the majority of unauthorised access attempts. - Train your team
Human error remains the number-one cause of cyber incidents. Regular staff training on phishing awareness, password management, and safe internet use is essential. - Strengthen passwords
Use unique, complex passwords and encourage the use of password-management tools. Avoid re-using credentials across platforms. - Back up data securely
Maintain regular, off-site backups and test them periodically. This ensures your business can recover quickly after an attack. - Encrypt sensitive data
Protect personal and financial information by encrypting files both in storage and during transmission. - Establish an incident response plan
Document clear steps for identifying, containing, and reporting a breach. Nominate key decision-makers and communication protocols. - Protect your customers
Have a plan for notifying affected clients promptly and transparently. Good communication can prevent reputational damage. - Review your insurance coverage
Cyber insurance is a critical component of resilience planning. It transfers financial risk and gives you access to professional response teams when you need them most.
The Most Vulnerable Sectors in Western Australia
Across Perth and regional WA, certain industries are experiencing higher levels of cyber exposure due to their digital operations:
- Professional services: Accountants, lawyers, consultants, and engineers hold valuable client information.
- Hospitality and retail: Point-of-sale systems, online reservations, and customer databases are frequent targets.
- Construction and trades: Cloud-based quoting, invoicing, and supplier management tools can be exploited.
- Health and NDIS providers: Sensitive patient and client records attract cyber criminals.
- Real estate and property management: Email-based transactions are vulnerable to payment diversion fraud.
Delmont Insurance Group works extensively with these sectors, ensuring cover is aligned with each industry’s operational risks.
Integrating Cyber Insurance into Your Risk Strategy
A robust cyber-risk strategy follows a simple model: Protect – Prepare – Recover.
- Protect your business with secure systems, staff training, and good cyber hygiene.
- Prepare through documented procedures, data backups, and regular testing.
- Recover with the support of an insurer and expert response partners when an incident occurs.
Cyber insurance complements these steps by providing both financial protection and access to immediate professional assistance, helping your business return to normal operations as quickly as possible.
Why Partner with Delmont Insurance Group
As a Perth-based insurance brokerage focused on supporting SMEs, Delmont Insurance Group offers:
- Local expertise: A deep understanding of Western Australian business environments and regulatory requirements.
- Tailored solutions: We align your policy with your actual exposures, from ransomware and social-engineering fraud to business interruption.
- Comprehensive support: End-to-end service from initial advice through placement, renewal, and claims management.
- Practical guidance: Checklists, staff awareness materials, and risk-control advice to improve security and potentially reduce premiums.
- Clarity and transparency: We explain policy wordings in clear, plain English so you know exactly what is covered.
We partner with leading insurers such as Chubb, AIG, Dual and Emergence, providing access to market-leading cyber protection.
Questions to Ask Before Purchasing Cyber Insurance
Before arranging cover, ensure your broker helps you answer the following:
- What incidents and data types are covered under the policy?
- Are ransomware, phishing, and invoice-fraud incidents included?
- What level of business interruption and restoration costs are covered?
- What support is available during an incident (forensic IT, legal, PR)?
- Are there policy conditions linked to security standards, such as multi-factor authentication or data backups?
- Are fines and penalties covered or excluded?
- What limit of indemnity and excess are appropriate for your business size and turnover?
A good broker will review these points carefully and ensure your cover is aligned with your operational risk profile.
Cyber attacks are no longer a distant possibility; they are an everyday reality for Australian small businesses. The financial and reputational damage caused by even a single breach can be significant, but with the right preparation, education, and insurance, the impact can be controlled.
At Delmont Insurance Group, we help WA business owners take proactive steps to understand their cyber exposure, strengthen their defences, and secure the right protection.
Do not wait for an incident to expose your vulnerabilities. Reviewing your cyber insurance now can save your business time, money, and stress later.
James Wilson
Director – Delmont Insurance Group