Hello, friend Liga Asuransi. How are you? In today’s digital era, cyberattacks are a real threat that can affect any company, including small and medium-sized enterprises. Recently, Indonesia has once again been in the global spotlight regarding cyberattacks. In the first half of 2025, more than 133 million cyberattacks were recorded targeting the country, with an average of 9 attacks per second. Although the number of attacks has decreased compared to the previous year, the threat remains real. One of the most worrying is the return of the Mirai Botnet, which now targets Internet of Things (IoT) devices such as CCTV cameras and household routers. This botnet is capable of controlling millions of devices to launch massive attacks, making it a serious threat to companies that have not yet strengthened their security systems.
Additionally, ransomware attacks are becoming increasingly sophisticated. Hacker groups such asLockBit3.0 andRansomHubhave developed a double extortion technique, which involves encrypting data and threatening to release sensitive data to the public. The attack on the Temporary National Data Center (PDNS), which involved 210 government agencies, is a stark example of how vulnerable our digital infrastructure is.
For companies, cyberattacks are not just a technical issue; they can also damage reputations, erode customer trust, and cause significant financial losses. However, many companies are unaware that they are vulnerable to cyberattacks.
Is your company one of them? Here are some characteristics you should be aware of:
The Impact of Cyber Attacks on Companies
Cyberattacks are more than just technical disruptions; their impact can be far-reaching and potentially threaten business continuity. Companies can suffer significant financial losses due to the loss of data, money, or digital assets. For example, a ransomware attack can encrypt an entire system, requiring a company to pay a ransom or face exorbitant recovery costs.
Beyond immediate financial losses, a company’s reputation is also at stake. Leaked customer data or disrupted service can erode the trust of clients and business partners. In the age of social media, data breaches can spread rapidly, triggering long-term negative impacts on a company’s image.
Another impact is operational disruption. Systems downed by a cyberattack can delay critical business processes, projects, or customer service. In industries that rely heavily on technology and data, this downtime can cause significant productivity losses and impact customer satisfaction.
Furthermore, legal risks are also a concern. Companies that fail to protect sensitive data can face lawsuits, fines, and regulatory sanctions, especially if they fall under personal data protection regulations. This demonstrates that cybersecurity is not just an internal IT issue, but also a corporate legal and compliance responsibility.
Given these impacts, it’s clear that every company, large and small, cannot ignore cyber risks. Awareness of this potential loss is a crucial first step toward further evaluation and protection.
Characteristics of Companies Vulnerable to Cyber Attacks
Not all companies realize they are vulnerable to cyberattacks. Recognizing early warning signs is a crucial step in mitigating risks before losses occur. Here are some key signs to look out for:
- Lack of Cybersecurity Policy
Companies that lack clear cybersecurity SOPs or rarely update protocols are vulnerable to being targeted. Without clear policies, employees may not know what steps to take when a threat occurs, increasing the potential for human error. - Outdated IT Systems
Infrequently updated software or hardware, including delayed security patches, makes it easier for hackers to exploit vulnerabilities. Older systems are often incompatible with the latest security technologies, increasing the risk of attacks. - Low Employee Awareness
Human error is a major cause of data breaches. Lack of training and education makes employees vulnerable to phishing attacks, malware attacks, or unintentional actions that expose security vulnerabilities. - Unencrypted Sensitive Data
If financial information, customer data, or company secrets aren’t encrypted, outsiders can easily access or steal the data. Companies that don’t implement basic data encryption are highly vulnerable to breaches. - Not Having a Backup or Disaster Recovery Plan
Companies without data backups or a recovery plan face greater risks in the event of a ransomware attack or data loss. Without a mitigation plan, recovery can be time-consuming and costly. - Lack of Cyber Insurance Protection
Having Cyber Liability Insurance isn’t just a formality. This policy helps cover financial losses resulting from data loss, lawsuits, or system recovery costs. Companies that don’t have this protection face significantly higher financial risks.
Recognizing the characteristics above is the first step in assessing a company’s readiness to face cyber threats. The sooner a company identifies vulnerabilities, the sooner mitigation measures can be implemented, from system updates and employee training to the use of appropriate insurance solutions.
Tips for Reducing Risk and Mitigating Cyber Attacks
After identifying the characteristics of a vulnerable company, the next step is to implement mitigation strategies to minimize the risk of cyberattacks. Here are some practical steps you can take:
- Update IT Systems Regularly
Ensure all software, hardware, and security systems are always updated. The latest security patches help close vulnerabilities frequently exploited by hackers. Using modern systems compatible with the latest security protocols is a key foundation of a company’s digital defense. - Conduct Employee Training and Education
Employees are the first line of defense. Regular training on phishing, malware, and cybersecurity practices will increase their awareness. Simulated cyberattacks can help assess employee responses and strengthen a digital security culture. - Implement Data Encryption and Protect Sensitive Information
All critical data, both financial and customer, must be encrypted. Encryption ensures data remains secure even if the device falls into the hands of unauthorized parties. Proper access settings also prevent internal leaks. - Have a Backup and Disaster Recovery Plan
Back up data regularly and store it in a secure location or in the cloud. A disaster recovery plan should be clear and regularly tested to allow the company to recover quickly in the event of an incident. - Use Cyber Liability Insurance
As an additional mitigation measure, cyber insurance provides financial protection in the event of data loss, ransomware, or lawsuits. This product helps cover recovery costs, legal advice, and third-party compensation, allowing for more effective financial risk management. - Evaluate Regularly and Use a Professional Broker
Collaborating with an insurance broker who understands the risks of a company’s sector is crucial. The broker can tailor policies to specific needs, assess risk exposure, and ensure adequate insurance coverage. Regular evaluations ensure mitigation strategies remain relevant to evolving threats.
With a combination of technical strategies, employee education, data management, and insurance support, companies can significantly reduce cyber risk. These measures are not just preventative measures, but also long-term investments in maintaining reputation, operations, and business sustainability in the digital age.
The Role of Cyber Liability Insurance and Brokers in Company Protection
After implementing technical mitigation measures and employee education, the next step, which is no less important, is to protect the company financially throughCyber Liability InsuranceThis insurance product provides protection if a company faces losses due to cyberattacks, such as ransomware, data theft, or third-party lawsuits.
With the right policy, companies can cover a variety of costs that arise, including:
- Data and System Recovery Costs– Restoring systems that have been downed due to a cyberattack can be expensive, especially if it involves external IT consulting.
- Legal Fees and Third Party Liability– If customer or business partner data is leaked, companies may face lawsuits and regulatory fines.
- Communication Costs and Reputational Crisis– Manage public information and internal communications when incidents occur to maintain client trust.
However, choosing the right policy is not easy. Every company has unique risks, depending on its size, business type, and digital infrastructure. This is where the role of a policymaker comes in.professional insurance broker become very important. Brokers can:
- Evaluating Company Risk Exposure– Assess weaknesses in IT systems and business practices.
- Tailoring the Policy to Your Needs– Ensure insurance coverage is appropriate to the potential loss and relevant threat type.
- Assisting with the Claim Process– Facilitates communication with insurance companies in the event of an incident, making the claims process faster and more efficient.
- Provide Latest Updates– Provides information on the latest cyber threat trends and relevant insurance products.
With a combination of technical and financial protection through Cyber Liability Insurance, along with guidance from professional brokers, companies can more confidently face evolving cyber risks. This protection is not only about mitigating losses but also about safeguarding reputation, operations, and business sustainability in the challenging digital era.
The Importance of Cyber Insurance Protection
L&G friends, cyberattacks are no longer a threat to be ignored. From increasingly sophisticated ransomware to botnets targeting IoT devices, every company has the potential to suffer significant losses—financially, reputationally, and operationally. Recognizing the characteristics of vulnerable companies, implementing mitigation strategies, and maintaining secure digital systems are important steps, but they are not enough to completely mitigate the risk.
One of the most effective steps is to use Cyber Liability Insurance. This policy provides protection against losses resulting from cyberattacks, from data recovery costs and legal claims to reputational crisis management. More than just insurance, it’s a strategic investment that ensures business continuity in the digital age.
However, choosing the right policy requires special expertise. This is where the role of insurance broker professional becomes crucial. Brokers can help tailor coverage to a company’s risk profile, facilitate the claims process, and provide the latest updates on cyber threat trends. With broker support, companies can feel more at ease and focus on business development without worrying about sudden cyber risks.
📌 Don’t wait until an incident occurs to realize the importance of protection.
📞 Contact the team L&G Insurance Brokers via WhatsApp at 0811-850-7773for a free consultation. Our team is ready to help you understand cyber risks, customize your policy, and ensure your company is optimally protected.
With awareness, mitigation strategies, and the right insurance protection, your company can remain resilient in the face of evolving digital challenges. Don’t let a cyberattack jeopardize your reputation and your business’s future!
