Do Small Businesses Need Cyber Liability Coverage?

mike crowley

October is Cyber Liability Awareness Month so it is a perfect time to make sure small businesses understand the risks and are informed that they are not safe from hackers. Small businesses are targeted at a higher rate than larger businesses says a report on cybersecurity firm Symantec.  Even with multiple reports proving it, small business owners still don’t think it will happen to them.

So why do cyber criminals seek out small businesses? Well that is easy, they are easy targets. Small businesses spend less on security measures than larger companies.

What do you companies have to lose?

  • Reputation: This is probably the most critical consequence of a data breach. Some large businesses like Target may be able to bounce back but small businesses will have a harder time winning back customer’s trust.
  • Customers information- There are many costs associated with the loss of customers personal and financial data. I have seen many studies and see anywhere from $64-$250 per client’s record.
  • Stolen funds- money transferred using online banking credentials.
  • Productivity- If you and your employees are spending time trying to focus on cleaning up the break, you are not spending that time serving your customers, so business will suffer.

There is no way to guarantee your company won’t get breached but there are steps you can take to reduce your costs if a breach occurs.

  • Have a plan in place- Makes sure you know what to do and how to do it if a breach were to occur.
  • Train your employees- Constant employee training is important to make sure they know what to do and what not to do. Human error is the cause of 1 out of 3 beaches.
  • Have the right team to help. Your IT company should be well aware of the gaps in your system that could be causes for concern.
  • Get the right cyber liability coverage. This will cover the financial loss and protect your assets while helping you through a breach.

Reach out to us to learn more about cyber liability coverage and to give you peace of mind that your business and its assets are protected.

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Erin Keltner

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