As a business owner, there are many types of insurance you need to think about to protect yourself, your employees and the facility in which you work – among others. Your biz needs a cybersecurity insurance policy: 3 reasons you may not have considered. Do you need to add another insurance policy to the mix? Maybe not, but if you don’t have a cybersecurity risk insurance policy you are putting yourself and your business at risk if you suffer a cybersecurity attack.
Please don’t think:
- My business is too small to be a target. Ask yourself: whether your business grosses $50,000, $500,000 or $5 million… can you afford a breach?
- I don’t have enough private data that I’d be hacked
- My staff is trained well enough to avoid phishing scams
- It’s too expensive. Ask yourself… could you afford to pick up the pieces of your hacked and stolen data, your reputation, the fines that may be levied because of noncompliance? It could be tens, if not hundreds, of thousands of dollars.
A cybersecurity insurance policy will help you in the event of a hacking, ransomware or phishing attack that cripples your business.
Three Reasons You Need A Cybersecurity Insurance Policy
First and foremost remember your business IS a target. If you are on the internet then you are in the sights of a cyber hacker. In fact, “small” businesses don’t have the security measures in place to block a cyberattack. The firewalls are sufficient, the staff hasn’t been trained, the IT department isn’t running security audits… these and more are opening the door to a hacker and welcoming him or her in.
A cybersecurity insurance policy won’t prevent a breach, but it could help you recover if your business becomes a target.
- The cost of a data breach includes: the potential of lawsuits, covering the data monitoring costs of clients whose data was compromised, recovering stolen funds and more. The loss of income and still having to pay the bills may cause you to shutter your doors completely. When you have a cybersecurity risk insurance policy you may have access to funds to help your business deal with these unexpected losses and expenses.
- Ransomware, a form of extortion, could be covered under your cybersecurity insurance policy. When it comes to cybercrimes, the hackers gain: unauthorized access to your data, theft of information and other confidential data. Consider too that the human factor – employees and vendors – can lead to a cyber attack. Even one hacked password can open the door to your entire business and lay it bare for the dark web.
- Your traditional insurance policy is likely not enough to protect you in the event of a cyberattack. You likely have an insurance policy that covers your building and its assets, coverage for intangibles like libel and slander. Your traditional policy may help you recover and replace your servers and computers BUT it will not help you restore your reputation or the costs to recover the data itself. Remember too that if your cloud data provider is breached and your data is compromised, your traditional insurance policy will not protect you.
Sit down with your team and review your cybersecurity protocols and protocols for passwords and multi-factor authentication. Call on Seth Melendez, President of WareGeeks Solutions for a data risk audit. If you don’t know where your potential cybersecurity leaks are, you won’t know how to address them and plug those holes in order to keep a hacker out.
WareGeeks Solutions is a Roselle, New Jersey-based full-service IT Solutions and Service Provider.
We specialize in Data Protection, specifically Business Continuity and Disaster Recovery (BCDR) and Cyber Security. We work with all small, medium, and large companies. We conduct a multi-level risk analysis that identifies processes procedures and/or technology that stifle productivity with oppressive layers of complexity. If you have IT or security questions contact Seth at WareGeeks Solutions. For information or a consultation, call (877) 653-7146, or email us at firstname.lastname@example.org. www.waregeeks.com