Whether you are starting a business, or have been running one for a while, something that should be on your radar is Cyber Security Insurance. It might not be on your radar, but here’s why it’s essential.
It costs an estimated $86.5K for a small or medium business to recover from a single security incident, according to a 2016 Kaspersky Lab report. These attacks are on the rise. A study conducted by Ponemon Institute in 2017, says that in 2016 55% of small businesses experienced a cyber attack, while in 2017 this when up to 61%.
Attacks are also becoming more sophisticated, but fortunately, there are many things a small business owner can do to protect themselves from cybercrime including having the right insurance and purchasing this preventative software.
Does my business need Cyber Liability Insurance?
Cyber Security, Data Breach coverage, call it what you will but many small-business owners may think they don’t need it. However, if your business handles any of the following you might want to reconsider:
- Customer payment, credit, or bank account information
- Medical Information
- Social Security or driver’s licenses
- Customer names, email addresses, phone numbers, and addresses
- Digital assets that have no hard copy and would take time to replicate
This last point is one that insurance agent Gwen Jaques says that many businesses don’t consider. In her 22 years in the field, she has seen these data breaches become more frequent and says that business owners have to start ensuring their digital assets as well as their physical assets.
“I had a client, somebody broke into his business and stole his backup drive. Maybe the thief thought all the security camera data was on there, but the real problem was all the companies artwork was on that hard drive. They had to recreate all their original templates and menus. That took time and money.”
We are all reliant on our software and digital assets. If you are not backing up in the cloud or invested a considerable amount of resources in irreplaceable digital assets, it would be worth considering insurance.
What Does Cyber Liability Insurance Cover?
Many insurance companies offer stand-alone cyber policies, as well as protection that can be added on to your current policy. The Hartford, for example, has Data Breach Insurance that can help a company manage risks and take action if an event occurs.
There are two types of Cyber Liability Insurance to consider, first and third party. First-party insures the policy holder’s data in case your network is hacked, or your data is stolen. Third-party coverage protects your business if a customer or partner sues because of a data breach. For example
The first-party policy may cover
- Services to determine if a breach occurred, and assist with compliance to rectify the breach
- Notifying affected customers, including letter/ email preparation and mailing
- Expenses associated with business interruption, like additional staff, rented or leased equipment
- Cyber extortion reimbursement for credible threats such as those that introduce malicious code to phish customer systems or corrupt your computer.
- Good faith advertising after an attack
The third-party policy may cover
- The security gap in your software that spread a virus
- Electronic media liability, including infringement of copyright, domain name, trade name, service mark, or slogan or an intranet or Internet site
- Violation of the right to privacy
- Judgments, civil awards, or settlements you’re legally obligated to pay after a data breach
Protecting against cyber attacks may seem like one more an up-front cost, but given that small businesses are an easy target and are being hit more frequently, it is worth being prepared.
How can I further protect my business against cyber attacks?
In addition to ensuring against cyber attacks, it is crucial that every business works to prevent cyber attacks. Data Security software can keep your business safe and secure against malware attacks. This software is very cost effective, easy to install, and is used by millions of businesses all over the world.
Keeps your business safe against evolving threats that runs in the background with firewall protection, antimalware, ransomware vaccine and more.
Protects your business from evolving threat such as Trojans, keyloggers, phishing, spyware, back-doors, and other advanced persistent threats. Webroot’s Built-in Identity & Privacy Shield stops data from being stolen or captured when using the internet.
Right now, CUE Marketplace is offering a free 30-day trial on Bitdefender, Webroot, and other data security software, plus a 20% lifetime discount on software purchased through CUE Marketplace.
Find more Data Security software and software news about growing trends at the CUE Marketplace. For some links in this post, CUE may receive an affiliate commission.