The vast majority of cyberattacks happen to small and mid-sized businesses.
SMBs make good targets for many reasons. They often lack sufficient security measures and personnel that can identify potential threats. SMBs often hold sensitive data, like credit card information, that is valuable to hackers and many do not follow best practices for backing up their files and data. In addition, many SMBs are connected to the supply chain of larger companies, which hackers will leverage in a break-in.
What is Cyber Liability Insurance?
Cyber Liability Insurance covers the first- and third-party risks associated with doing business online. It covers privacy issues, internet-related instances of intellectual property infringement, viruses, or any other issue that may be passed along via internet connections. First-party coverage is protection for the data you own, such as information that pertains to your customers or employees. Third-party coverage is protection for liability associated with your customers’ data, among other things.
➧ Almost half of all cyberattacks are directed at small businesses. Macro malware, online banking and ransomware attacks are the predominant types of cybercrime affecting small businesses. (PR Newswire 10/11/18)
➧ Companies take an average of 191 days to realize a data breach has occurred (Small Business Trends 9/30/18)
➧ About 60% of companies go out of business within six months of an attack. (The Globe and Mail 10/29/18)
Does Your Business Need Cyber Insurance?
Here are a few things to consider as you determine how vulnerable your business is to a cyber attack. Do you or your staff ever –
» Forget to back up and securely store all your business data?
» Forget to make sure your IT equipment has the latest software updates?
» Forget to shred documents and forms with personal information (like Social Security #s)?
» Leave passwords on sticky notes on the monitors or just have weak passwords?
» Leave yourself logged into your bill-paying software?
» Download software from unknown sources?
A few other things you should consider: how much of your client’s private information is kept secure? do you have a plan in place in the event of a data leak? what would the cost be to your business if clients’ personal information was stolen? are you confident that your standard business insurance policy will cover the expense of a potential data breach?
Cyber Insurance Desired Coverage
Your business is never too small to be the target of a cyber attack. The cost to recover from a cyber attack is substantial, and many businesses do not recover financially. Review and modify your IT systems annually and put an emergency plan in place. Protect your business with Cyber Insurance.
- Cyber Incident Response Fund
- Business Interruption Loss and Extra Expense
- Contingent Business Interruption Loss and Extra Expense
- Digital Data Recovery
- Network Extortion
- Cyber Privacy and Network Security Liability
- Electronic, Social and Printed Media Liability
- Cyber Crime: Computer Fraud
- Cyber Crime: Funds Transfer Fraud
- Cyber Crime: Social Engineering Fraud
The costs of a data break on your business depend on the level of the breach. It costs 5x more to respond to a breach with no plan in place compared to the costs with a robust security plan ready to go.
Unfortunately, it’s no longer a question of if your organization will suffer a breach, but when. Technology has become more complex and sophisticated and so have the threats that businesses face. Every business and organization needs to be prepared with both cyber liability insurance and an effective cyber security plan to manage and mitigate cyber risk.
Let’s set up some time to talk so we can work together to ensure you and your business have the right coverage and protection in place.