Cyber liability insurance can be a valuable asset for many small businesses, but there are many factors to consider when choosing a policy that fits your business needs. Here are some points to consider when choosing cyber liability insurance to ensure all your bases are covered.
- Business Continuity: Consider how a cyber incident could impact your business’s ability to operate. Cyber liability insurance may cover costs associated with downtime and lost revenue due to a cyberattack.
- Reputation Management: A data breach can harm your business’s reputation. Cyber liability insurance can include coverage for public relations and reputation management efforts to help rebuild trust with customers.
- Consultation with an Expert: It’s often a good idea to consult with an insurance professional who specializes in cyber liability insurance. They can help you assess your specific risks and recommend an appropriate policy.
- Type of Data Handling: If your business collects and stores sensitive customer information (such as credit card numbers, personal identification data, or medical records), you may be at a higher risk for data breaches. This makes cyber liability insurance beneficial to have in the event of a breach.
- Size and Industry: Small businesses that operate in industries more prone to cyberattacks, such as healthcare, finance, or e-commerce, may benefit more from cyber liability insurance. Similarly, larger small businesses may have more exposure to cyber threats due to their size and complexity. It is important to remember that in today’s world, cyberattacks can and do happen to businesses of all sizes in all industries. Even if the risk is low, it is still there.
- Legal and Regulatory Requirements: Depending on your location and industry, you may be subject to data protection laws and regulations that require you to have cyber liability insurance. Failing to comply with these requirements can result in significant fines, which can be easily avoided by complying with security standards and having cyber insurance in place.
- Cost of a Data Breach: Consider the potential financial impact of a data breach on your business. Data breaches can be expensive, involving costs for investigating the breach, notifying affected individuals, offering credit monitoring services, and potential legal fees, not to mention the cost of downtime during the attack. Cyber liability insurance can help cover these costs.
- Financial Resources: Evaluate your business’s financial resources. Cyber liability insurance premiums can vary based on coverage and deductibles. Small businesses with limited financial resources may find it more challenging to absorb the costs of a cyberattack without insurance.
- Risk Tolerance: Assess your risk tolerance. Some business owners are more risk-averse and prefer to transfer the risk of a cyber incident to an insurance company. Others may choose to rely on robust cybersecurity measures and risk management practices without insurance. Insurance is recommended to help avoid the cost of a cyberattack, which no one is immune to.
- Third-Party Relationships: If your business relies on third-party vendors or contractors that handle sensitive data, it is essential to ensure they have adequate cybersecurity measures in place. Cyber liability insurance can also protect you if a breach occurs due to the actions of a third party.
Cyber liability insurance can provide essential protection for many small businesses, especially in a world where cyberattacks are more frequent at all levels of business. Each business should evaluate its unique risk profile, financial situation, and regulatory requirements to determine whether cyber liability insurance is recommended. Consulting with an insurance expert can be particularly helpful in making an informed decision. Here at TechSolutions, we can assist with setting up your IT and cybersecurity environment in a way that meets a cyber liability insurance vendor’s needs. If you need help adding more security in the IT world to your business, call us today.
SOCIAL ENGINEERING: Watch Out for These Tactics
Social engineering is a tactic used by bad actors to gain access to your information. It involves preying on human emotion by sending urgent requests, pretending to be someone you know, or creating false links that promise rewards but want to take your information. It is crucial to be observant of social engineering tactics, and always think twice before clicking a suspicious link, a new friend request from someone you know, or opening an email attachment from an unknown sender. Here are a few more tips to help avoid falling victim to these tactics:
- Verizon offers Call Filter, AT&T has ActiveArmor, and TMobile has Scam Shield. Most phone providers offer various ways to filter spam/phishing in the form of robocalls and SMS for free.
- People can forward fraudulent/spam texts like these to 7726 (SPAM) across all carriers to report as fake/spam/phishing.
- If a known C-Suite employee has their name used in spam messages, have this person send out a company-wide email saying not to respond to any requests or favors from emails claiming to be them.
- Save contacts in your phone with a distinct profile. That way if you receive a spam text claiming to be someone you know, you can easily identify it as phishing and discern who the real contact is.
Human error is the highest risk for letting bad actors into your business and data. That is why employee cyberawareness training is crucial, and company reminders such as these are a great way to keep everyone in the loop.