How to Clean Your Company's Cyber Hygiene

As we near the last weeks of National Cyber Security Awareness Month; we continue to take a closer look at why Cyber Security is a New Hot Topic and why Cyber Liability Coverage could be a must have for many small businesses.  

Some experts predict that by 2020 there will be 200 billion connected things. Cars, planes, homes, cities, and even animals are being connected. As we continue to integrate technology into our daily lives; we become increasingly more dependent on the need to be and stay connected. The online business world is huge, and the internet continues to help companies of all sizes and industries become more productive, visible and profitable. Where most companies opt for a personalized website to display company information, the latest updates and online client profiles; this visibility and client connection can also extend to their social media like/branding pages. The value that a company’s internet presence holds cannot be measured as it opens the smallest companies up to a Global Market. Also, as more business owners utilize technology such as cloud computing, mobile devices and apps, the risk of hackers accessing money and sensitive business data becomes more real.

Most people have heard of at least one large corporation or bank that has fallen victim to a cyber security breach. Some include: Sony/PlayStation, Adobe, Yahoo, eBay, Anthem, Home Depot, Target, JP Morgan Chase and the most recent Equifax, just to name a few. This kind of data breach can potentially cause your organization and clientele to further be victimized by stolen credentials and financial fraud. Some of the above companies have experienced public humiliation through media and class action lawsuits for breach of privacy/data. This can take years for a company to recover from the after effects of this type data intrusion. However, statistics show that the impact on small and midsize businesses is much greater. They are also the most vulnerable and sought after by online criminals.

Small Business Cyber Security Prevention Statistics show:

  • 43% of cyber-attacks target small businesses.

  • Only 14% of small businesses rate their ability to mitigate cyber risks, vulnerabilities and attacks as highly effective.

  • 60% of small companies go out of business within six months of a cyber-attack.

  • 48% of data security breaches are caused by acts of malicious intent. Human error or system failure account for the other 51%.

  • Small businesses are mostly concerned about the security of customer data.

  • While Small/Midsize businesses are concerned about cyber-attacks (58%), more than half are not allocating any budget at all to risk mitigation.

As we can see the need for cyber liability insurance is hugely beneficial for small and midsize businesses, as no firm is safe from a potential cyber-attack no matter how stringent their security might be.

Kristy Randolph, Commercial Lines Account Executive, Lic # 0K22965

Kristy Randolph, Commercial Lines Account Executive, Lic # 0K22965

The Commercial Insurance industry has continued to evolve Cyber Liability coverage tailoring it to the increasing risk and exposures inherent to online business activity. There are many reasons small and midsize companies should obtain Cyber Liability. Widespread Coverage; it can cover a wide range of compensations in case of a cyber-attack. These include payment for business interruptions, expenses of hiring extra personnel to deal with the aftermath, notifying customers of a breach, and many others.

The coverage is affordable; as well as helps small firms with limited resources/finances to cover losses that could potentially be disastrous to the organization and their customer base.

The insurance can help bridge the gap between losses and risk management, effectively helping the business recover some or all their losses depending on their policy conditions. Extra protection on Shared Data for companies that use an external service to host your data. Cyber liability insurance can protect your business even if the cloud storage provider gets targeted by a cyber-attack. It's important to note that having the right cyber insurance coverage does not eliminate the need to invest in cybersecurity. You and your staff still need to have good cybersecurity practices and the right response plan should anything arise.