Stop for a moment and consider how much your life is conducted through the internet. Our business communication, our banking, and our social interactions are all online and connected by email, document storage, social media, websites...and accessible from a variety of different platforms: smart phones, laptops, ipads and PCs. The internet has given us an unprecedented level of access and connection, and it’s rapidly expanding. But with all the upsides, there is a downside - and it, too, warrants our attention.
The growth of connectivity has brought with it the growth of cyber crime. According to the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (SBTT) programs (powered by SBA.gov), "Cybercrime costs the global economy about $445 billion every year, with the damage to business from theft of intellectual property exceeding the $160 billion loss to individuals." Obviously cyber crime can be enormously expensive. For a business, it can be catastrophic.
For businesses: there are the direct costs of a cyber breach that can include:
And that’s not all. Cyber breaches can also result in indirect costs to small businesses:
Insurance is an important place to start. Be certain you have a rider that covers cyber property losses and cyber casualties included on your policy. It’s not a matter of if a data breach will occur..but when. Be prepared to minimize the damage when such an event occurs. Cyber liability can cover such things as:
But that isn't all. What about the liability that a breach can have in exposing confidential information about your customers and employees?
It's important to understand that your liabilities to third parties whose information you fail to protect can be greater than the direct losses to your business. Cyber liability insurance covers the thousands or even potentially millions of dollars of claims against your business from your customers who suffer losses because you didn't secure their information.
All of this gets complicated as to what's covered by errors and omissions, what's general liability, what's employment practices liability, and what's covered by your contractors. You need an insurance expert to sort it all out and guide you in the right coverage for your business.
Cyber insurance and cyber liability insurance only work for you if you are taking appropriate cybersecurity measures. It’s important to stay on top of security measures and regularly update them, because as technology advances, so do a hacker’s abilities.
Cybersecurity isn't just something that is nice to have. Cyber thieves and hackers do everything they can to stay constantly one step ahead of you. The survival of a small business depends on it. Contact Winter-Dent by clicking here or on the link below for a cybersecurity assessment today, and don't go another day without taking the steps you need to keep your business safe.