The internet is home to 4.38 billion users worldwide. With that comes 6 million records that are lost or stolen daily. As a result, $20 billion in ransomware damages are projected to accumulate by 2021. If you’re a small business owner, being aware of your own cybersecurity risks is beneficial. And, one key way to help your business plan for, and respond to, a cyberattack is by adding cyber liability insurance.
Cybersecurity risks for businesses include:
- Accidental release or theft of private information, both paper and electronic, including:
– Customer contact information, like phone numbers, mailing addresses and email addresses
– Employee personal information, like names, Social Security numbers and checking account numbers
– Vendor information, like federal ID numbers, Dun & Bradstreet numbers and lines of credit
- Computer, account or machine hacks by a disgruntled employee or cyber criminal
- Ransomware attacks, including cyber extortion and blackmail
- Data breaches through lost or stolen electronics like flash drives, iPads, smartphones, laptops, etc.
As the number of businesses that rely on the internet for their operations has increased, opportunities for cyber extortionists have exploded. A report from Accenture found 43% of cyberattacks target small businesses, and only 14% have resources in place to defend the business. So, ask yourself: Without cyber liability insurance, would your business be ready?
What can cyber insurance do?
When it comes to your building and its contents, commercial insurance has you covered. However, when it comes to cybersecurity specifically, you may benefit from coverage that helps your business respond to an attack.
At Frankenmuth Insurance, we package cyber liability insurance and data breach insurance coverage to help your business face cyber extortion with confidence.
If a cyberattack or data breach happens, cyber insurance provides coverage for:
- Lost revenue if your computer data is damaged or destroyed
- Costs to notify people of a privacy breach
- Defense against allegations of privacy regulation violations
- Public relations costs in the event of an adverse media report
- Fines from a bank or card association
- Loss of money or securities
This protection also provides you with access to a team of cybersecurity specialists and free resources available online, 24/7.
Explore more ways to reduce cyber risk.
Additional ways to help prepare your business for a cyberattack include:
- Encouraging employees to change their passwords regularly (but first, review the 6 tips for creating a secure password)
- Asking employees to avoid sharing their login information with anyone – even colleagues
- Teaching employees how to spot a scam
- Conducting routine software updates
- Auditing user accounts and deleting those that are no longer necessary
- Removing any unnecessary information from your servers
- Putting policies in place so employees know the rules to follow
For more tips from our cybersecurity experts, read 10 steps to protect your business from a data breach.