Did you know that cyber attacks on small businesses are on the rise? Both large and small companies can be affected.
More than 75% of companies have reported being attacked this past year – making this a very real threat:
“During the third quarter of 2022, approximately 15 million data records were exposed worldwide through data breaches. This figure had increased by 37 percent compared to the previous quarter. Since the first quarter of 2020, the highest number of exposed data records was detected in the fourth quarter of 2020, nearly 125 million data sets.”
Small businesses require an online presence to remain relevant, as well as need proper communication with their customers to be conducted on a daily basis. This is why it is vital that you are prepared for cyber attacks.
This is where cyber insurance comes in.
What Exactly Is Cyber Insurance? Why Do I need Cyber Liability Insurance?
Is cyber insurance worth it? How much does cybersecurity insurance cost?
Nothing is more important than protecting your business and seeing it thrive. Every security that is needed should be put in place.
You probably have small business insurance, however, you still should also have cyber insurance. There are very real benefits of cyber insurance.
Cyber insurance (also called cyber liability insurance) is a type of insurance sector security that protects your business from the potential financial and legal issues and liability that could affect you from a cyber incident.
With businesses now so heavily online, you are more susceptible than ever to dangerous cyber attacks and data breaches. The effects of such an attack could destroy your business and your reputation. In fact, it could be a huge legal (and emotional) mess.
“As of 2022, the average cost of a data breach in the United States amounted to 9.44 million U.S. dollars, up from 9.05 million U.S. dollars in the previous year. The global average cost per data breach was 4.35 million U.S. dollars in 2022.” – Statista
The potential loss from an average data breach is massive. Maybe a larger company or corporation could handle this, but most companies of small to medium size cannot. It usually results in complete closure.
Kinds of cyber attacks:
- Hacking
- Phishing attacks
- Malware /ransomware
- DoS or DDoS attacks
- Spyware
This is why data breach insurance coverage is crucial to the success and longevity of your business. It will keep you covered if a security-compromising cyber incident hits your business.
Sensitive customer, employee and client information may be accessed or stolen in an attack. Your cyber insurance will help you to recover and repair.
The Kinds Of Things That Cyber Insurance Protects
The main benefit of cyber security insurance: cyber insurance will cover a huge range of expenses that occur with a cyber attack.
The following costs and services are typically covered:
- Lost or transferred funds
- Recovery Data
- Restoring compromised Data
- Informing those affected by the breach
- Credit monitoring for those breached
- Repairing damaged services
- Computer forensics
- Costs to repair reputation
- Lawsuits expenses
All of these criminal actions are covered by your cyber insurance.
The Kinds Of Things Cyber Insurance Does Not Protect
What does cyber insurance not cover?
There are a few items that are not covered by cyber insurance. These include foreign cyber activity, risk lawsuits from before the attack, reimbursement of any future lost income from an attack, theft of your intellectual properties, and future protections put in place.
The benefits of cybercrime crime insurance coverage make the investment in insurance worth the investment.
Is Cyber Insurance Costly?
Because attacks are so prevalent, security protection is a huge business. The prevalence of breaches is driving up the costs.
So, how high are cybersecurity insurance costs, and how much cyber insurance do I need?
Cyber insurance costs vary based on several factors, like the size of your company and your location.
Main factors that affect the price of your premium:
- Size of business and industry
- Number of employees
- Annual revenue
- Level of desired coverage
- Your deductible costs
- Location of your business
A smaller deductible will raise your insurance premiums.
Ways To Save On You Cyber Insurance And To Increase Protection
There are many things you can do to keep your small business safe which in turn will lower your small business security costs for insurance. Network security for business should be a top priority.
How to prepare for cyber attacks and protect your business:
- Know how to secure a network.
- Identify all potential risks to your business network security and be prepared for any potential issues before they occur.
- Have secure business networks in place. Your insurance provider will reward you for strong security by lowering your premiums.
- Identify how to secure your computer from unauthorized access.
- Protect your company data with employee training and security in place. Store a limited amount of customer data, and use data security best practices.
- Keep your company software and hardware updated, and monitor it regularly.
Cyber Insurance For Success
All businesses these days have a huge online presence – with a great deal of information, goods and services online. Many employees work remotely.
This online world is why having a secure small business network and solid cyber insurance is necessary. It’s your responsibility to protect your employees, your clients, and your company.
Businesses are responsible for keeping their clients’ or customers’ sensitive data secure, and this responsibility can become costly in the event of a breach or other cyberattack.
You can protect your small business from potential negative fall-out from cyberattacks. Take every step possible to protect yourself (and reduce your premiums!) with cybersecurity plans in place with help from ETS. We are in the protection business.
There are many cyber security benefits, and we can help you to create a security plan that works for you, while we help you find the best cyber insurance companies for you.
You will feel secure in every possible way, and you’ll be ready to face and conquer any attacks that come your way.
Reach out to ETS today!
