Have you ever heard about a company having to close its doors in response to cybercrime? Events like this grab our attention and might cause us to become more aware in our day-to-day life. Although in the end, we often walk away thinking:
"It will never happen to me... right?"
Not necessarily. The sad reality is that cybercrime is happening to businesses of all sizes more than ever before. For many small businesses, cybersecurity liability insurance may feel like an unnecessary expense. However, the odds that cybercriminals will target your business are more likely than they seem.
Every company will suffer from a cyber-attack at some point, whether that be through ransomware or a data breach. It’s only a matter of time. Cybersecurity liability insurance will help your business effectively respond in the event of an attack.
Why Cybersecurity Liability Insurance Matters:
1. Data can be at risk, no matter location or company size
Whether it’s on-premises or in the cloud, your data could still be at risk. Data breaches that originate in your system make your business vulnerable regardless of location.
Despite popular belief, small businesses get targeted more than large businesses. This is because the resources are often lacking. The good news is that cybersecurity doesn’t have to be expensive. Start small and build upon your protection.
2. Claims are expensive
Data shows half of all cybercrime victims have had to spend more than $50,000 responding to an attack. Can your business afford to risk that? Not only will you have to worry about paying a ransom, but you could become buried in legal fees as well as accounting and IT costs.
3. Ransomware and Technology Fraud Coverage
Insurance companies will require your business to be set up with certain cybersecurity measures before granting coverage. These security measures are put into place because insurance companies know how effective they are at preventing, detecting, and/or responding to cyberattacks.
Ransomware is the most common attack that blocks access to a victim’s data, website, client services systems, or other critical resources until payment is made in return. Ransomware Coverage can include the money to pay ransom demands, the cost of hiring experts to negotiate with the hackers, and the cost of computer forensics experts who can determine how the hackers gained access.
Before granting Ransomware Coverage, most insurance companies will evaluate your business to ensure you have the following cybersecurity measures in place:
- Multi-Factor Authentication (MFA)
- Anti-malware software
- Patch management process
- Mandatory information security and privacy training for all employees at least once a year
- Weekly backups for critical information
- Recovery time under 8 hours (objective for critical systems, applications, and processes)
- Business continuity plan (detailing how the business will continue operating)
- Disaster recovery plan (detailing how the business will respond to unplanned incidents)
- Incident response plan (detailing how to return affected systems and data back to an operational state as quickly as possible)
This may seem like a long list of requirements; however, a strong IT provider like Imagineering can simplify the process. Cybersecurity liability insurance is well worth it to secure the future of your business.
Next Steps...
Ask yourself, “Does my business have a robust risk management plan and the right insurance policies to stay ahead of attacks?” If you don’t, it’s time!
Just like your house needs protection from flood or fire, your business needs to be protected from ransomware and cyberattacks. Not sure where to start? When you work with the local professionals at Imagineering, we will help secure your business and plan strategically for the long term one step at a time.
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