Cybercrime is one of the most rapidly emerging exposures to any business today. While larger organizations have sophisticated protection to fight cyberattacks, small and medium-sized companies have become the primary targets for hackers. Such claims can cost hundreds of thousands of dollars and require pricey forensic investigations that take several weeks to complete. However, being prepared to respond can help limit your losses when a cyber incident occurs.
Why Hackers Are Targeting Small Business
Hackers target small buiness because they are perceived as having fewer cyber security defenses in place and can be hacked with ease. Cyber security requires a financial investment, and for many small business owners, the cyber threat does not seem real because it is only the big companies that make headlines. The misconception of many small business owners is the data they have is not valuable. In reality, nearly 50% of the cyberattacks are directed at small businesses, and with the number of employees working remotely, that number continues to increase. According to a Nationwide Survey, 83% of small business owners offer employees the option to work remotely, yet only 50% of small business owners have updated their remote security protection.
Preventing a Cyberattack
For small businesses hoping to ensure their networks can minimize or prevent an attack, several types of antivirus security software are available, with hardware and software-based firewalls. Small business owners should invest in data backup systems separate from the current operating system, encryption software, and multi-factor authentication or password security software. In addition to the software solutions, small businesses should adopt certain practices: Keep software up to date, educate employees, implement formal security policies, and regularly communicate what not to do. Lastly, practice your incident response plan; with all the best efforts, a cyber-attack is inevitable. According to the National Cyber Security Alliance, nearly 60% of all small businesses close within six months of a cyberattack. Therefore, it is paramount that your organization has a plan in place to respond quickly to minimize any damage.
Cybersecurity Best Practices
Cyber insurance coverage can provide a team of cyber experts the ability to respond quickly to a data breach, including forensic experts, attorneys, breach response specialists, and credit monitoring companies. Cyber coverage is an inexpensive way to protect the corporate balance sheet from losses not typically covered under traditional insurance policies. In addition to first-party costs like forensic investigation and notification, cyber coverage also extends to third-party claims alleging unauthorized disclosure of personal information or other confidential data.
Want to Learn More?
At Mason-McBride, our cybersecurity liability policy experts will identify your business’ cybersecurity risks and create customized and appropriate coverage to reduce your exposure. Contact us today to get protection.
For helpful tips on other popular topics, check out our articles on Cyber Insurance, Commercial Crime Insurance, and Ransomware Developments. As always, we are here to help you, your employees, and your business with all your insurance needs – from commercial insurance to group benefits to personal insurance. Thank you for allowing Mason-McBride to serve you!