Cybersecurity threats were a major concern for all businesses this year. As we head into 2023, cybersecurity will stay top of mind, and it’s important to have a robust, multi-layered security strategy in place to stay adequately protected.
With 60% of small businesses shutting down within six months of a cyberattack, cyber insurance is one important piece of your security strategy that cannot be overlooked. Here, we’ll dive into what it is, why it’s so important, and what IT support you’ll need to be eligible for protection.
What is Cyber Insurance?
Nationwide defines cyber insurance as a type of insurance that covers your organization’s “liability for data breaches involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver’s license numbers, and health records.” Cyber insurance protects your organization’s data and the customers you serve. Cyber insurers provide multiple types of coverage, including first-party, third-party, and cyber extortion. You can even purchase add-ons such as crime policies and device coverage depending on your needs.
All businesses can benefit from cyber insurance, but it’s especially important if you handle credit card or bank account information, medical information, and/or personal information such as Social Security numbers, names, phone numbers, and addresses.
Cyber insurance can help cover:
- A variety of cyber attacks that impact your business such as digital extortion, viruses and malware attacks, privacy breaches, denial-of-service (DoS) attacks, and website attacks.
- A variety of expenses including business interruption expenses, breach response costs, cyber ransom payments, and legal fees.
Why is Cyber Insurance Important?
There are many reasons why cyber insurance is a must-have for your business. For one, cybersecurity attacks will continue to increase and become even more sophisticated as we move into 2023. There are a variety of reasons for this, which Forbes outlines here — including continued remote work, the rise of the cloud, and the increase in Artificial Intelligence (AI) technology.
Another important reason to consider cyber insurance is that general liability insurance does not cover cyber-related incidents. It’s easy to assume that your general liability coverage is sufficient, but in reality, general liability coverage will not cover cyber related attacks and all the detrimental fees that come with them. Your organization needs a customized cyber insurance policy based on your unique risk.
Lastly, cyber insurance can save your business money and cover expenses in the event of a cyber attack. Based on IBM’s most recent data breach report, the average cost of a data breach in the United States is $9.44 million. That is a detrimental price tag for any business!
Secure Your IT With AllConnected
If you’re interested in exploring more about cyber insurance but don’t know where to begin, reach out to AllConnected. We specialize in delivering comprehensive IT solutions to a variety of businesses based on your unique technology needs.
Although we don’t offer cyber insurance, we understand ways you can lower your cyber insurance premiums. You can do this by implementing a variety of security strategies such as:
- Assessing your cybersecurity risk to pinpoint vulnerabilities and improve compliance
- Utilizing Multi-Factor Authentication (MFA) to keep your accounts more secure and verify the identify of your remote team
- Implementing email security strategies to defend against malware and ransomware attacks
- Enable DNS security to protect your network
- Creating cybersecurity awareness trainings to educate your team
- And more!
AllConnected can assist your organization with all of these security protocols, and more. With our comprehensive suite of services, you can ensure your business, employees, and extended teams stay secure and that your data stays protected. Contact us today to get started!