Cyberattacks are inevitable for businesses, especially SMBs, which are prime targets due to their limited resources to combat cyber events. It’s not if a breach will occur, but when.Â
Over the decades, we’ve witnessed how security issues plague SMBs. But cybersecurity services and cyber insurance can be complex, so business leaders need to understand how to protect their company data the same way enterprises do, but at an SMB price.
Protect your business like you protect yourself
As consumers, we protect our home, cars and family with insurance.  We have a wealth management plan. But as business leaders if we don’t have a plan, we’re jeopardizing our entire livelihood through:
- Data recovery costs
- Interruption in operations
- Legal fees
- Reputation damage
Just a glance at recent statistics underscore the breadth of the problem:
- 46% of cyber breaches impact businesses with fewer than 1,000 employees
- Small businesses spend an average of $955,000 per attack to restore normal operations
While these numbers are alarming enough to make most business owners evaluate the need for cyber insurance, there are others. Shop around to find a practical cyber insurance policy that will:
- Mitigate the financial impact of a cyberattack
- Cover costs related to data breaches, legal defense, and more
- Aid in swift recovery so you can continue operating effectively and cover payroll and loss of revenue
- Provide coverage against digital risks, like insurance for physical assets
Cyber insurance is often overlooked by SMBs due to a lack of visibility into the volume of sensitive information they must protect. The reality is, you likely have more risk than you think. If you can’t see it, you can’t protect it. Business leaders need to understand the volume and risk of their sensitive data, including file footprints, potential file compromises, and employee treatment of those files.
Oops I did it again – employee training
Did you know nearly a quarter of all breaches are caused by human error? Most of these breaches were caused unintentionally through negligent actions of employees or contractors.
As the volume of sensitive information continues to grow, it is imperative that employees have a sense of accountability and are following cybersecurity best practices. SMBs should leverage tools that indicate that training has been effective and that your staff is following company guidelines and not just ticking boxes. Determine how employees can adhere to your cybersecurity best practices and make it part of your company culture so all employees take ownership in protecting your most values asset: your data.
Reputations are tough to repair
For small business owners, a cyber incident can shut down your shop for good. Even if you can recoup the monetary loss, your brand reputation may never be the same. Building customer trust is no easy feat as any business owner knows, and once it’s been broken, it’s even harder to repair. Have a business plan that includes cyber insurance to help mitigate the effects of a cyber incident and maintain brand trust.
Where do I start?
Choosing a cyber insurance policy can feel overwhelmed—especially when looking at the price tags of large insurers. Here’ a to-do list finding the right policy:
- Review your current policy: Check what your general business policy covers. Most offer minimal protection for cyber incidents, and umbrella policies often leave gaps
- Assess your data volume: Know the amount of sensitive data you’re protecting. Use tools to calculate your risk liability and attach a dollar value, which will help you negotiate better with insurance providers
Closing the cyber insurance loopÂ
Once you’ve settled on the policy, read it thoroughly to know exactly what’s covered. Just like any type of insurance, not all policies are created equal. PCG can ensure you have the right cyber services in place and that your policy is aligned with your business continuity plan should there be a cyber breach.
Don’t wait until it’s too late to get cyber insurance. Small business owners should strongly consider obtaining a policy to minimize the impact of any cyber-related incidents (breaches, leaks, phishing scams, ransomware, etc.).
For those who already have a cyber insurance policy in place, bravo! Now be sure to optimize coverage as cyber insurance premiums increase annually due to growing threats.
Ready to discuss safeguarding your business before it’s too late? Book a consult with an IT security specialist today.
David Hodgdon is the founder and CEO of PCGiT.
