According to the MidYear QuickView Data Breach Report, data breaches exploited over 4 billion records by mid-2019. From hospitals to small businesses, many organizations struggled to protect their customers’ information.
So if you’re running a business and haven’t considered cyber insurance coverage, then you might want to think again.
It’d be nice to have an umbrella solution to protect your online assets, but that’s just not the case. No matter how much you invest in securing data, there’s a good chance that information will get stolen at some point.
Instead of installing a firewall and hoping for the best, take proactive steps to prepare yourself for a breach. The best businesses always have a backup plan for IF things go wrong.
Are you ready to equip yourself to take on hackers and handle any cybersecurity threat? Who is?! Read on to learn more about cyber insurance and how you can weather the storm of a cyber attack.
Cyber Security in a Remote World
As businesses have transitioned to remote work, hackers have found new vulnerabilities to take advantage of businesses and individuals.
Frequent use of online platforms means more opportunities for malware and other common cyber threats to strike.
Getting more sophisticated, hackers have also turned to social engineering in recent years. It’s easy to impersonate a co-worker or company and initiate digital financial transactions.
Sometimes the best methods aren’t even the most high-tech.
And with your resources spread out, you may struggle to coordinate cyber defenses among workers and customers. A hacker only needs one connection to take down an entire system, so everyone in your network needs to be on the same page.
First Steps to Security
You can take initial steps to work towards improving digital security. Starting a transparent data policy, backing up your data, and installing security software are great ways to get started. But there’s no way to guarantee immunity from a data breach.
The best way forward is to give your business a safety net for withstanding a cyberattack. That’s where cyber insurance comes into play.
What is Cyber Insurance Coverage?
Cyber insurance provides your business with liability for various forms of data breaches. This means that you have help when it comes to lost data, data recovery, and potential lawsuits.
It’s important to note that cyber insurance is not the same thing as general liability insurance. General liability insurance covers things such as physical injuries and damage with regard to your business, which cyber insurance doesn’t deal with.
Cyber insurance focuses on damage to software systems and the information itself. But it may not include malicious social behavior. Forms of social engineering are sometimes add-ons to insurance or left uncovered.
So be careful when selecting a cyber insurance plan. There are different types of coverage for a variety of situations.
In order to select the best coverage for your business and needs, you need to first understand what benefits are included with your cyber insurance coverage.
First-Party
First-party coverage deals with issues that directly impact the breached person or business. This includes the costs of repairing infected software, paying off money demands from hackers, and recovering profit losses.
There are also further repercussions that your business needs to keep in mind.
Informing employees, customers, and the general public of a breach requires more time and money. And the brand fallout that could follow may demand a hefty PR strategy to soften the blows to your company’s image.
First-party coverage allows you to tend to the wounds your company suffers in a data breach. But it also defends against collateral damage that could leave your company with a bad reputation later on.
A devastating breach can have ripple effects, so you want to have coverage that supports your business for the long haul.
Third-Party
If you do have to announce a data breach, don’t be surprised if customers and the public respond with complaints and lawsuits. The blame game is a common effect of cyber attacks, so you need to plan for attacks from all parties.
Third-party coverage addresses accusations of negligence, attacks against privacy, and any regulatory penalties. This coverage also provides finances for a lawyer if you have to move forward with a legal proceeding.
Unfortunately, the people you serve may come after your business to get something out of a terrible situation. Because hackers remain hidden, your company brand often becomes the face of the incident.
Having third-party coverage doesn’t mean you distrust your customers. You just never know how people will act in sensitive situations, so it’s best to prepare for anything, and protect your business the best you can.
Choosing the Right Insurance
Whether you want to guard your business and personal data or the information of hundreds of customers, you need to find the right fit for your needs.
Thankfully, you have options when it comes to selecting cyber insurance. And you can consider a few factors to help guide you toward an affordable plan.
Nature of Your Business
The amount and type of data you store will affect the price of your insurance, naturally. What industry your company is in? What is your company size – like how many computers, how many employees, how many work local versus remote? All of these are great questions and things we need to discuss.
There’s a big difference between a small business and a large hospital. The greater and more sensitive the information, the higher the risk, thus the price. As long as you understand your business’ data, you can gauge how much you’ll end up paying.
Your Track Record
Before securing a solid insurance plan, you need to show that you’ve been on your best behavior. Insurance companies don’t like to see businesses that have made a habit of filing claims. More claims can drive up the cost of insurance.
Remember, cyber liability insurance is something to fall back on, not something to rely on. Insurance companies can only bail you out so many times. Preparation is essential and putting the protections in place will help.
Smart Businesses Think Ahead
Even if you’re aware of cyber threats and have put up your defenses, it’s still not enough. You may not be able to keep your data safe forever. Instead, you should plan ahead, expect the worse and prepare for it… and the recovery of that data breach or cyber attack.
Are you ready to find the best cyber insurance plan for your business? Contact Kicker Insures Me Agency today to explore your options and give your business confidence with peace of mind.