Cyber Liability: Overcoming Objections from Your SME Clients, Part 2 

You’ve probably heard your fair share of objections from SME clients. While overcoming them is part of the broking game, Cyber Liability can still be a tough product to sell. That’s why we’ve broken down three more common objections and provided talking points to help address your client’s concerns. 

Read Part 1 for how to address more Cyber Liability objections. 

I work with an IT provider, so I’m good.

Some SMEs do take cybersecurity seriously. If your client has contracted an IT provider to secure their systems, they might think Cyber Liability insurance is unnecessary for their small business. 

A client who takes steps to prevent cyber breaches should be applauded. But they should still understand that no system is foolproof. Think about it this way: large corporations spend millions to protect their networks from hackers, yet they still suffer major breaches. Your client is likely spending much less than the big guys and may rely on less sophisticated software and techniques. 

The bottom line: For your cyber-savvy clients, Cyber Liability can be explained as a safety net against cracks in their defences and human error (a significant cause of breaches in Australia). In fact, their cybersecurity measures may get them a better premium from insurers. 

Aren’t I already covered for this?

Depending on the client, the SMEs you serve may already protect their businesses with several types of insurance. They might mistakenly think that Cyber Liability protection is included in one of these policies. 

Building awareness of Cyber Liability insurance and what it covers is key to getting many SMEs on board. If they don’t understand the product or terminology used in the policy wording, it may be tough for them to recognise the value of this insurance. 

The bottom line: Explaining the difference between Cyber Liability and other common forms of insurance (like IT Liability, Public Liability, Professional Indemnity, BizPacks, etc.) can help SMEs understand how these policies help fill a huge gap in their cover.  

It’s too expensive.

Brokers know all too well that many SMEs are working with razor-thin profit margins. Convincing them to add another insurance premium to their business expenses can be a big ask. 

For cost-conscious clients, it may help to put things into perspective: Not only are cyberattacks relatively common for small businesses, but they can also be very expensive. The ACSC reports that the average cost of cybercrimes increased by 14% per incident in FY2021-22. This translates to over $39,000 per incident for small businesses and $88,000 for medium businesses1.  

The bottom line: Cyber Liability premiums may be a small price to pay compared to the cost of a cyberattack. 

Explore our new cyber hub for more great info on protecting your SME clients against the financial fallout of cyberattacks and find resources to share with your clients and brokerage. 

1. ACSC, Annual Cyber Threat Report, July 2021 to June 2022 

BizCover for Brokers acts as agent of the insurer and not as the agent of you or your client. Any advice provided is general advice only and does not take into account the personal objectives, financial situation or needs of you or your client. Always read the Product Disclosure Statement or Policy Wording (available on our website). 

© Copyright 2023 BizCover Pty Limited. BizCover for Brokers is a business name of BizCover Pty Ltd (ABN 68 127 707 975; AFSL 501769). 



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