Cyber insurance for small business
Cyber Insurance for Barbershops
Many barbershops run on an online booking system, a client list with names, phone numbers and emails, and card payments. If someone breaks into any of them, you can lose bookings and takings, and your clients' details can be stolen.
Your contents and liability policies usually leave out hacks and data breaches, so cyber is a separate policy.
Cover is subject to the policy terms and the insurer's acceptance.
Reviewed by
Founder and Director, Grace Insurance. Diploma in Broking, Fellow CIP. In insurance broking since 1992.
What cyber insurance pays for
What Cyber Insurance Pays For
Cyber insurance pays for experts to get your systems back, the cost of telling clients when their details are exposed, and the income you lose while you are offline.
Someone takes over your booking account
A stolen password lets a stranger cancel bookings or message your clients. Cyber cover pays for experts to lock them out and get the account back.
Ransomware locks your computer
Ransomware is a program that locks your files until you pay. The policy pays experts to restore your systems, and some policies also cover the ransom demand, called cyber extortion.
Client details are leaked
If client names, numbers or card details are stolen, the policy pays to find out what happened and tell the people affected. It also pays your legal costs if they claim against you.
Lost income while you are offline
If bookings and payments stop working, the policy can pay the income you lose until they are back up.
A fake invoice or changed bank details
Cover for being tricked into paying a scammer, called social engineering fraud, is often an optional extra. Ask for it by name if you pay suppliers online.
Is it worth it
Does a Small Barbershop Need Cyber Cover?
It depends on what runs online
It depends on how much of your business runs online. If you only take cash and keep bookings in a paper diary, the risk is small.
Online bookings and card payments
If clients book online, pay by card and get text reminders, a hack can stop your takings and put their names, numbers and card details in the wrong hands. That is when cyber cover is worth having.
Simple habits lower the risk
Use a different strong password for each account and keep your software up to date. Turn on two-step login, which sends a code to your phone as well as asking for your password.
Cyber insurance cost
What Affects the Price of Cyber Insurance?
Your premium, the price of the policy, depends on your turnover, the client data you hold, your limit, your security habits, any extras you add and your excess. The exact figure is confirmed on your quote.
Your turnover
A bigger business has more to lose while it is offline.
The client data you hold
More names, numbers and card details mean more work to fix after a breach.
The limit you choose
The limit is the most the policy pays. A higher limit costs more.
Your security habits
Insurers ask about two-step login, backups and software updates.
The extras you add
Cyber extortion and social engineering fraud can each add to the premium.
Your excess and claims history
The excess is the amount you pay towards each claim. A higher excess usually lowers the premium, and recent claims can raise it.
You can pay the premium in one go, or spread it with premium funding, where a finance company pays the insurer for you and you repay it weekly, fortnightly, monthly, quarterly or every six months.
For how premiums are worked out, read how much barber insurance costs.
Who it is for
Who Needs Cyber Insurance?
Cyber insurance suits barbershop owners and hairdressers and salons that take online bookings or card payments and keep a client list. Shops with several staff logging in have more ways for someone to get in.
Solo barbers using a booking app should check what the app provider covers if their account is broken into, and what it leaves to them.
Related covers
Other Insurance for Barbers
Business Interruption
Covers the income you lose while the shop is closed after damage your policy covers, such as a fire.
Read about business interruption →
Public Liability
Covers claims from clients and the public for injury or damage to their property, with limits of $5 million, $10 million or $20 million.
Read about public liability →
Shop Contents and Fit-out
Covers your chairs, mirrors, stock and fit-out, the benches and plumbing you put in, whether you own or lease.
Read about shop contents and fit-out →Cyber FAQ
Cyber Insurance Questions
Usually not. Most property and liability policies leave out hacks and data breaches, which is why cyber is sold as a separate policy.
Some policies cover a ransom demand, called cyber extortion, and others do not. The policy wording, the full document setting out your cover, says whether it is included and what the insurer needs from you first.
Only if your policy includes social engineering fraud, the cover for being tricked into paying a fake invoice or changed bank details. It is often an optional extra, so ask for it by name.
If your policy has an incident response line, a number you call for expert help after an attack, call it before you do anything else. Do not pay a ransom on your own. Change your passwords and keep a record of what happened.
Usually, yes. Most cyber policies cover your costs when your accounts or data are attacked, including your booking account. Check the app provider's own terms to see what it takes responsibility for.
Cyber insurance quote
Get a Cyber Insurance Quote
Tell us how clients book and pay, and a broker will contact you with your options.
1800 556 777Monday to Friday, 8:30am to 5:00pm Perth time
