Insurance 101 – Cyber Security and Your Small Business

Insurance 101 – Cyber Security and Your Small Business


Today’s businesses rely on technology to not
only perform daily functions, but to stay connected, informed, and involved. Unfortunately,
with these increased conveniences comes increased risk. Credit card fraud, identity theft, embezzlement
– all can and are being committed online. No business is immune to cyber attacks, but
small businesses are especially vulnerable. In fact, 40 percent of all cyber attacks target
businesses with fewer than 500 employees. With limited budgets and few or no technical
experts on staff, small businesses are a prime target. SO what can you do to protect yourself
and your business? First, assess your risk and identity your weaknesses. Is your sensitive
information linked to the Internet? What type is linked? Social Security numbers? Bank account numbers? Do you capture customer’s personal data? Create a contingency plan. Enact security practices
and policies to protect the sensitive information of your organization and its employees, and
then hold employees accountable to the policies. Make
sure your employees are routinely educated on new and emerging threats and the best ways
to identify and report suspected incidents. Require that employees use strong passwords
and regularly change them. Establish a schedule to perform data backups to ensure that critical
data is not lost in the event of a cyber attack. Store all backup files offsite, and encrypt
any sensitive data about the company or customers. Secure your Internet connection by using and
regularly updating antivirus and antispyware software on all computers. Use a firewall,
encrypt information, and hide your Wi-Fi network. While these tips can be very effective in
helping prevent a cyber attack, your business could still be a victim despite your best
efforts. This is why cyber liability insurance is so critically important. Should your business
suffer an attack, cyber liability insurance will help cover costs for recovery efforts
such as data restoration and recreation, system restoration, business income losses, and public
relations services. Cyber liability coverage will also
help defend you should you become the target of a lawsuit due to a security breach in your
company. As a business owner, you can earn customers’ respect as a trusted business partner,
and retain their business, by promoting security practices to protect their data, including
protecting yourself with cyber liability coverage. Talk to your independent insurance agent today
about cyber liability coverages and how you can protect your business from a cyber attack.

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