The cybercriminal is always looking for ways to break into your business’s network, and in most cases, it’s just a matter of time before you get hit. There are many different avenues for a cyber breach. According to a recent survey, 91% of all cyberattacks start with a phishing email that is opened by an unsuspecting victim. Imagine being the one who accidentally gave access to the hacker.
Common entry points include weak passwords, disabled security tools, unprotected personal computers, and public Wi-Fi, to name a few. Once they’re in, the damage to you, your company, and your reputation could be devastating.
If you think your small business will never be a target of such an attack, think again. A recent story reported the following:
- The average cost of a cyberattack on a small to medium-sized business ranges between $826 and $653,587.
- Forty-seven percent of businesses with fewer than 50 employees have no cybersecurity budget.
- Employees of small businesses experience 350% more social engineering attacks than those at larger enterprises.
- Eighty-seven percent of small businesses have customer data that could be compromised in an attack.
In IBM’s Cost of a Data Breach Report 2022, the average attack costs $4.54 million without the demanded price factored in. IBM also noted that 83% of organizations have likely had more than one breach. Unless you’re willing to take that risk, implementing cyber insurance into your business’s budget is crucial. Cyber insurance offers many remedies. In addition to providing organizations with information and expertise following a breach, it helps to recover revenue and pay for the legal costs related to the incident.
A cyber liability insurance policy can help protect your business financially in the event of an attack. Policies can differ widely, and there are no set minimum criteria, so you’ll have to work closely with your agent to find the best policy for your organization. Here are some basic coverage areas to consider:
- Disaster recovery costs, which may include expenses for forensic accountants, attorneys, and advisors.
- Crisis management to help contain any bad publicity stemming from the breach.
- Social engineering fraud, which can result when hackers trick trusted employees or vendors into disclosing sensitive information.
- Extortion, which includes threats by foreign entities that can only be satisfied through large cash payments.
- Third-party damage covering violations committed by a subcontractor you hire, such as a mail house or fulfillment center.
- Business disruption if damage to your computer systems leaves your company unable to function for some period of time.
- Credit monitoring services, allowing customers suffering data exposure to periodically check their credit status.
Every company has to worry about being hacked. Similarly, there is no company in the world with completely foolproof cybersecurity. As a result, every business should prepare for a security compromise. When other safeguards have failed, cyber insurance can provide a stable, secure, and worry-free environment
Russell Uhrig helps business owners navigate the insurance industry, and the complexities of an insurance policy. Working closely with these business owners, he can provide the coverages that best fit the needs of his clients in their industry. Through the process of assisting businesses, Russell can empower business owners to have a deeper understanding of their policies through analysis, provide customer service, and create a service-oriented program.