Cyber attacks, ransomware and new disruptive technologies are making it difficult for small and medium size businesses to protect their information.
According to a Ponemon Institute study conducted in 2017, only 21% of companies rated their ability to mitigate cyber risks, vulnerabilities and attacks as highly effective. Businesses have to adjust to the realities of an ever more expanding digital landscape. If a company’s information is accessed through a cyber-security breach, it could costs millions of dollars.
The study reported the global average cost of a data breach is $3.86 million. A number that would bankrupt many small and medium sized businesses. If a business or company processes online payments, uses cloud systems or stores company information and customer data it’s best to invest in cyber insurance.
Cyber insurance is designed to help organizations and businesses lessen the risk of exposure to cyber security breaches. The policies cover a variety of liability and property losses that result from a business engaging in various electronic activities, such as selling on the Internet or collecting data within its internal electronic network. If breached, companies may have to reimburse other companies for expenses relating to the data breach. This includes things like legal counsel, a digital forensics team and notification costs.
It isn’t just large companies and corporations that are victims to hacking and phishing, small businesses are frequently targeted also. The Ponemon Institute study also reported that 61% of small businesses experienced a cyber attack last year.
And data breaches are only getting bigger.
The average size of breaches, based on the companies surveyed in the study, increased 2.2% every year on average and according to U.S Capital, 60% of small businesses go out of business within six months of an attack. Cyber insurance sometimes referred as cyber liability insurance has become essential in managing risk and mitigating damages caused by cyber attacks.
While looking into cyber insurance, it is important that any business understand how much coverage they need and that they’re taking actions to prevent breaches from happening all together. If you’re interested in learning more about cyber insurance coverage, plans, and pricing you can visit Fit Small Business to compare plans and get quotes
Encrypting your information, training staff members on how to identify phishing attempts and installing anit-virus software can dramatically improve a company’s ability to prevent a breach. A cyber insurance provider will also be looking for these as indicators to determine whether a business qualifies for coverage.
USA today reported on a breach that had occurred in 2016 to five sheriff and police departments in Maine. They were all victims of ransomeware attacks. One of the Sheriffs in Lincoln County didn’t want to pay the ransom but gave in after two days because of the huge risk losing their data would pose. Not every business needs millions of dollars of coverage, however, and for those who don’t usually access sensitive data, the cost can outweigh the risks.
Cyber Liability insurance can be tailored to meet the specific needs of a company and offers a variety of benefits that include: Data Breach Coverage, Business Interruption Loss Reimbursement, Forensic Support, Legal support and more. By having a trusted IT Partner, you can both develop a business continuity plan that can handle all disasters. And by having a disaster plan and a data protection plan you can rest easy knowing your information is safe.
When choosing a Managed IT Service Provider be sure to ask if they have cyber insurance and a disaster plan in place that meets your specific needs.
With Nerds Support, our clients have never been hacked, so you can have peace of mind knowing that your information is safe from hackers. We do the worrying for you so you can focus on growing your business and team. Be a happy client knowing your information is safely stored.
Contact us today for your FREE IT Cyber Audit!
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