Cyber insurance: why “later” is the riskiest setting on your practice
If client money moves through your advice, client data lives in your systems, and deadlines rule your week, you’re already a target. Cybercrime isn’t just “big company” drama anymore—it’s everyday business risk. New data this month shows the average loss per cybercrime report for small business in Australia has jumped to about $56,600—up 14% year-on-year. That’s enough to wipe out a quarter, postpone hires, or force you to explain delays to anxious clients. victorianchamber.com.au+1
What that means for you (plain and simple)
Attacks are frequent and fast. The ACSC logged a cybercrime report roughly every 6 minutes across 2024–25. Cyber Security Australia
The hit is getting bigger for SMEs, not smaller: small-business losses are trending up while attackers automate. Cyber Security Australia
Accounting practices carry extra downside: privileged access, bank details, TFNs, BAS and payroll files. If those leak—or your systems lock up before lodgement—you’re exposed on both cost and reputation.
What cyber insurance actually covers (when it’s set up properly)
Cyber insurance isn’t a silver bullet; it’s a financial airbag plus a pit-crew on speed dial. The right policy typically includes:
Incident response: 24/7 breach coach, IT forensics, data restoration, PR support.
First-party costs: business interruption, extra expense to keep operating, cyber extortion/ransom events.
Third-party liability: claims from clients or regulators if data is accessed or services fail.
Regulatory response: Privacy Act / Notifiable Data Breaches scheme notifications and legal costs.
We’ve seen that pairing sensible controls (MFA, backups, staff phishing drills) with a fit-for-purpose policy lowers both incident probability and downtime. That lines up with the Chamber’s warning: awareness without action is just hope with better branding. victorianchamber.com.au+1
“We’re accountants—we’re careful.” Good, now insure the gap.
Even careful firms get caught by:
Email payment redirection (invoice compromise)
Credential stuffing (reused passwords)
Supplier breach (your add-on app gets popped, your data goes with it)
Ransomware (encryption right before lodgement week)
Each has real costs—investigation, client comms, overtime, missed deadlines—and those are exactly the costs that have climbed for SMEs this year. Cyber Security Australia
How we handle it together
You talk to us. Tell us how you work (cloud stack, portals, payroll cycles, lodgement peaks).
Abacus handles advice and coordination. We make it simple, fast, and aligned to how accountants actually operate.
PSC, our insurance partner, places the cover. We’ve negotiated strong terms and pricing for Abacus members and manage claims end-to-end with PSC’s specialist team. One brief, one team, less admin for you.
