Is your business safeguarded against cyber risk? Do you have a plan for how your business will recover if data is stolen or blocked?

As we continue to rely more and more on technology, the risk of data breaches and digital hacks has increased.

That is where cyber insurance comes in.

“With cyber threats constantly on the rise, coupled with the skyrocketing cost of data breaches, it’s no surprise that more enterprises are considering data breach insurance.” – Chris Brook, Digital Guardian

What kind of insurance do I need to protect my business from cyber risks?

From phishing emails, viruses, malware, and beyond, there are many different ways cyber attackers can cause havoc on your business’ security. 

In many cases, cybercriminals will find ways to access information about you or your clients in order to sell or use the data for their own benefit.

What information is at risk when it comes to cybercriminals?

The most common type of information compromised is:

  • Credit Cards 
  • Debit Cards 
  • Driver’s License Numbers
  • Social Insurance Numbers 
  • Email Addresses

What is a personal data breach? 

Personal data breaches occur when cybercriminals gain access to company documents, hack personal employee computers, or access sensitive information like customer credit card numbers. 

These types of breaches typically occur when someone has visited a website that is not secure or open an attachment in an email that contains viruses. 

In these cases, businesses will need to cover costs such as hiring IT specialists, hiring a public relations firm, and any legal fees they incur. 

“Data breaches occur for a number of reasons, including hacking and poor cybersecurity procedures. The types of data stored by organizations can vary from simple, non-critical details to sensitive government intel.” – Chris Brook, Digital Guardian

What is a cyber-attack?

A cyber-attack occurs when a business is disrupted by damaged or blocked data.

Why should my business be insured in the case of a data breach?

Without the right coverage during a data breach, your business could be impacted on its reputation and finances. 

“Depending on the scale and severity of the attack, companies face hefty fines and expensive legal settlements that could easily top six figures.” – Canada Techs 

Just think, if your customers found out their information was stolen from you, how would they feel? How comfortable would they be about continuing to do business with you? 

With data breach insurance, you are still at risk of potential cyber-attacks, but you will be protected from financial losses. 

Cybersecurity insurance can help to lessen the burden of any data breach concerns and mitigate the impacts on your clients.

Do small businesses need cybersecurity?

Yes. All businesses should have some degree of cybersecurity and data breach protection. 

“Even if you are a startup, the cybersecurity risks are real. In fact, you have a higher chance of experiencing a breach. According to Verizon, small businesses account for 58 percent of data breach victims.” – Cover

How much does cyber insurance cost?

The scale and severity of a cyberattack impact the cost of recovery. 

The greater the risk, the more coverage you may need. Therefore, it is important to talk to your insurance provider to determine the right quote for your business. 

“Cyber liability insurance costs vary depending mainly on the various underwriting factors that allow the insurer to determine the potential risk that your business faces.” – Canada Techs 

Contact Benson Kearley 

The difficult reality is no matter how prepared a company is, breaches happen.
If you have questions about the information security measures your business can adopt, please don’t hesitate to contact us to learn more.