By Bailey May
In this day and age of technological advancements, the need for cybersecurity is increasing for any business. What is cybersecurity? In its simplest sense, it is the measures put in place to protect the technological systems and data of your business.
Insurance Agent, Bobbi Gellhaus, explains, “If your business dealings involve online activity or any information retention, whether Internet-based or not, your company is a good candidate for Cyber insurance. These days that includes virtually every business in operation.”
Even though businesses rely on computers and technology to function, it is very easy for this coverage to be passed by or disregarded as unnecessary or unimportant. However, industry-leading statistics state that more than 1/3 of consumers experience some type of Cyber related incident. Additionally, more than 50% of businesses have experienced at least one formof data breach. Typically this coverage is very inexpensive, and it is best to discuss with your agent to determine what coverage is best to fits your specific business needs. Cyber can affect anyone whether you have a physical office, a retail store, contracting business, large manufacturer or any business that works with customers, vendors or business partners.
Here are some fast facts on why cyber coverage could make sense for your business:
1. Data Breaches
Due to more federal regulations, companies now have more responsibility to protect their customers' personal information. If your company's data is breached, those affected must be notified by law. You can expect an increase in costs due to fixing security measures, identify theft protection and possible legal action. Even companies that store customer information electronically are vulnerable to breaches.
2. Intellectual Property Rights
Through social media, blogs or websites, your company can be exposed to libel, copyright or other infringement. Cyber insurance covers your company's intellectual property across these online platforms.
3. Damages to a Third-Party System
You could be held liable if an issue crashes a third-party system. Viruses can hurt customers' systems or fail your company software.
4. System Failure
Physical damage to the system can also result in loss of data. Damages by fire or other natural disasters may be covered by your current business policy, but the information loss might not.
5. Cyber Extortion
Hackers can hijack everything your business uses electronically. This includes your websites, networks and stored data. They will deny access to anyone and everyone and will demand payment to surrender the system. Not only will this cause a loss of revenue throughout the hack, but it will also bring on additional costs to deal with the damage from the hacker.
6. Business Interruption
If your business relies heavily on your computer system, a breach or issue of any kind may hinder your operations and result in a loss of revenue. Not only will you lose revenue, but you may lose valuable time and resources that now must go towards the issue at hand. Your customers may also be at risk and denied access to your system. Your customers being denied access, also known as denial of service attacks, have been on the rise since 2017. These attacks deny access by either sending traffic to the wrong page or overloading the whole system.
Cyber coverage is specifically designed to address the risks that come with using today's technology. Speak to your insurance agent to discuss levels of coverage that would work for you and your business operation. Think as cyber insurance as the cherry on top of your security sundae. Your security measures aren't complete until they're covered with insurance!