As a small business owner, you’re an important part of our economy. According to the U.S. Small Business Administration, 47.8% of American workers are employed at nearly 30 million small businesses across the nation. There’s nothing ‘small’ about those numbers, especially considering the immense growth these businesses have recently experienced thanks to the Internet.
This is because around 80% of small businesses report using at least one major online platform to advertise and display products and services, according to the Chamber of Commerce’s Technology Engagement Center.
The Internet is a cornerstone for companies like yours, but it can also become a double-edged sword. You’ve put in a lot of time, energy, and money into your livelihood, and likely bought insurance to protect it from physical risks like fire, flood, or theft.
Have you ever considered insuring against digital threats like data breaches? It’s probably time to consider cyber insurance.
What is Cyber Insurance?
Cyber insurance (also called cyber risk insurance or cyber liability insurance coverage (CLIC)) is protection against digital risks to your business. It usually covers the legal fees and expenses incurred by a data intrusion to help you stay financially secure, and many plans also offer customer notification services to keep you on the right side of government regulations.
Despite all the benefits of your small business’s online presence, the fact remains: there are ill-meaning web users looking for opportunities to digitally steal data and money. Cyber insurance exists as protection in case someone decides to target you. Unfortunately, a survey by Insurance Journal found 55% of small businesses have experienced a data breach and 53% of those have experienced multiple breaches. Currently, only about one-third of U.S. businesses are covered by some form of cyber insurance.
Why do I need Cyber Insurance?
Data breaches have the potential to cause damage beyond your computer. Besides needing to de-bug your system or replace hacked software, the information lost in a breach can damage your customers’ personal security and your reputation. You’ve likely seen various instances of company data breaches on the news – these attacks can be serious.
Along with the well-known risks of customer credit card, social security, and other personal data being stolen, don’t forget to consider your business’s liability for your employees’ information as well as company accounts. Cyber insurance exists to help you:
- Cover legal fees and expenses, including business losses and protection against extortion
- Alert customers to data breaches (a legal requirement in some states)
- Recover compromised data
- Restore personal identities and information of customers/employees
- Replace or repair affected software/hardware
The more you conduct your business online, the more reason you’ll have for needing cyber insurance.
How do I get Cyber Insurance?
Many insurance providers have cyber protection plans available, so looking at your business’s current provider is a good first step. It’s recommended for you to compare plans across several providers using resources like rate calculators and information from the U.S. Chamber of Commerce. Cyber insurance is another investment in your small business, so it’s important to find a plan which meets your specific needs.
Cyber insurance is incredibly important, should the worst happen. But that doesn’t mean you shouldn’t take every precaution to avoid the numerous threats facing your IT systems. Look to Exact IT for guidance in protecting your digital assets. Our team can help ensure you have the necessary measures in place to safeguard your business data.
Get started protecting your business from cyber threats.