Cyber insurance? But I'm not a big tech firm!
Small business owner? Nicely done! But here's something to keep in mind while you're going places and getting noticed: cybercriminals could be checking you out too. In 2017, 58% of all cyberattacks targeted small businesses. And according to the 2018 report by Ponemon Institute, the number of attacks on small businesses is rising.
(We’ll get these less-than-fun facts out of the way and then talk solutions, promise.)
Also in 2017:
67% of small businesses experienced a cyberattack. Hackers deliberately tried to compromise networks. Small businesses are especially vulnerable to “spear phishing” emails (personalized with name, title, company, work number etc.) inviting way-too-trusting employees to open links or attachments – and give away data.
44% of small businesses had a data breach. Confidential data got into the wrong hands, either because of a malicious attack or by negligence from an employee or partner. (Or a little of both. See Someone stole my work computer.)
33% experienced a ransomware attack. Users couldn’t access their network at all until they paid off their blackmailer. Sadly, the costs of handling a ransomware attack are often much higher than the ransom itself. Think lost data – and lost revenue from business interruption.
These numbers continue to trend upward ... and it’s not hard to imagine why. Unlike big established companies, small businesses are less likely to have poured time, money and energy into state-of-the-art defenses. Only 10% use any data protection at all.
And because they're also less likely to have Cyber insurance or extra cash to burn, they take a disproportionate financial hit too. Unfortunately, 60% of small businesses that experience an attack go out of business within six months.
So what should you do if you’re a small business owner who can’t afford a cyberattack … but may not think you can afford Cyber insurance?
As they say in software circles, there’s an add-on.
MAKING YOUR BOP EVEN BETTER
Depending on your insurance carrier, you can often fold Cyber insurance into a Business Owners Policy (or BOP). A BOP is a money-saving combo of 3 types of coverage recommended for small business owners: Commercial General Liability, Property and Business Interruption. (Don't already have one? You may want to ask yourself, When should I shop for a BOP?)
Many carriers now make it easy and affordable to throw Cyber insurance into the mix. Your Cyber insurance may include protection for:
1) FIRST PARTY COVERAGE (covers your non-legal costs):
Forensics. Determining if a breach occurred - and how bad it was.
Notification and credit-monitoring. Notifying anyone whose data may have been compromised, usually a privacy law requirement. In some states, you're also required to monitor their credit reports.
Crisis management and public relations. Restoring your good reputation by hiring professionals in crisis management, public relations and advertising.
Business income and extra expense. Replacing income lost due to a breach and covering any new expenses that arise when getting your business back up and running.
Extortion. Reimbursing the ransom you may choose to pay to get your network back online – plus the cost of the security firm you’ll need to hire to negotiate with the bad guys.
Damaged electronic data. Replacing or restoring data compromised by a breach.
2) THIRD PARTY COVERAGE (pays others if you have legal costs):
Regulatory proceedings. Covering legal defense and penalties or fines if you're brought to task by a government regulator like HIPAA (Health Insurance Portability and Accountability Act).
Partner, vendor or client lawsuits. Covering legal defense and penalties or fines if you're sued by the people connected to your business for failing to provide security.
HOW ELSE CAN YOU PROTECT YOURSELF FROM A CYBERATTACK?
Some insurance companies provide small businesses with risk management services that provide free or discounted risk assessment, employee training, and protective hardware or software.
ADDITIONAL RESOURCES YOU SHOULD CHECK OUT:
Risk Assessment Tool to see how vulnerable you may be to a cyberattack
Cost Calculator to estimate how much a data breach could cost you
List of data breaches that may surprise you!
Want to check out your options for top-rated Cyber insurance ... which may include adding it to a money-saving Business Owner’s Policy (BOP)? Call our friendly, licensed agents for a custom consultation on the right coverage for you.
6 ways green insurance is good for your bottom line
You probably know “going green” can save you money. But did you know you can save money through Eco-insurance? Specialty business coverages, green buildings & vehicles, energy savings insurance & more.Learn How to Save!
The right coverage for you? Surprisingly simple.
Choose from an extensive variety of comprehensive auto coverage with group discounted rates for your cars or trucks.
Whether house or condo, protect your castle by letting Mylo’s experts guide you to a sweet home insurance plan.
However you roll, Mylo protects your vehicle … with a special discount for bundling auto and home coverage together.
Mylo takes the tricky out of choosing a health plan, guiding you to the right coverage for you and your budget.
Ready to untangle another tricky topic?