Does Your Business Need Cyber Insurance?
Cyber insurance is something that no business can do without. Digital attacks don’t just happen to big corporations. They occur to hospitals, schools, government entities, financial institutions and startups. Small businesses are the top targets of cyber criminals.
Small businesses are easy targets. They often operate on a very tight budget, eschew cyber coverage in lieu of other types of insurance, and often don’t train their employees on methods to avoid a breach. Small businesses often focus more on marketing and concrete day-to-day operations instead of what they consider to be a nebulous possibility.
Depending upon the type of business, a breach can result in stealing customers’ personal information, passwords, email, Social Security numbers and credit/debit card numbers. The actual number of cyber attacks are severely under reported and there’s no requirement that you do so. Business owners often choose to remain silent – they know that disclosing the information can adversely affect their reputation and result in lawsuits by those affected.
Cyber insurance covers a variety of expenses should your business be hacked or the target of ransomware and other types of nefarious activity. Individual policies can vary, so you need to understand exactly what is and isn’t covered. If you conduct business with European customers or businesses, you’ll need to be compliant with the General Data Protection Regulation (GDPR). Make sure your policy covers this.
Cyber insurance typically covers forensic investigations of a breach and expenses related to litigation such as lawyer fees and fines. It will cover the costs of interruptions and financial loss to your business due to multiple types of cyberattacks and crisis management costs that includes notifying those affected by the attack. It also encompasses the cost of credit monitoring for your affected customers and reputational loss, along with data loss, recovery and recreation.
If your business stores information that includes names, credit/debit information, Social Security numbers, medical data and other types of personal information, you have a regulatory obligation to maintain the data securely. Cyber attacks are becoming more frequent and sophisticated. It’s not a question of if your business will be targeted, but when.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
We can be found on Social Media at the following links.
The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487
