46% of all cyber-attacks impact businesses with under 1,000 employees. Couple this with IBM’s report stating 60% of those businesses end up closing their doors within 6 months of a cyber-attack, and it becomes easy to see how important cyber insurance is becoming. Yet, many at risk businesses do little or nothing at all to protect themselves.
It’s easy to assume that large sized businesses are the primary target of cyber-attacks. However, most of these companies have high levels of cyber security. Meanwhile, many small and medium sized businesses have poor security measures. This means their data is on average easier to obtain and may contain access to larger partners and vendors as well. Most phishing and ransomware schemes are games of numbers and opportunity, meaning most hackers will have a wide net of targets. So while small business owners may feel that they’re “flying under the radar”, they may actually be at the greatest risk.
In this era of increasingly sophisticated phishing schemes, cyber insurance has become an essential starting point for businesses. Cyber liability insurance helps protect businesses from the high costs involved in recovering from a data breach or malware attack. Additionally, it can provide the technical resources needed to regain access to data, restore system access, and assist in managing reputational damage.
However, cyber insurance doesn’t offer preventative and protective measures. In order to qualify for cyber insurance, basic cyber hygiene needs to be in place within your business. This cyber hygiene includes keeping data organized and secure as well as having established best practices in place.
Three Steps to Best Cyber Practices
First, you need to assess your cybersecurity posture. Maintain a list of all software, hardware, and applications your business uses. Analyze your business for vulnerabilities such as how old equipment is disposed of, if staff are being properly trained on safe practices, and if employees are connecting to work remotely.
After that, create a hygiene policy for your company to follow. This includes procedures such as using complex passwords and multifactor authentication for sign-ins, consistent software and security updates, backing up data, and only giving permissions to the required personnel.
Lastly, do your research and find the right cyber insurance for your needs. Compare different plans and find the coverage and benefits that fit your business best. Following the first 2 steps listed can help you to get lower insurance rates and get the right policy for your needs.
Every business should have cybersecurity in place in 2023, and cyber insurance has become a needed part of that equation. If you are not currently setup with the above mentioned items or if you have any questions about cybersecurity, cyber insurance, or any general IT questions, feel free to reach out to us at firstname.lastname@example.org.