The general perception is that only large businesses have vulnerabilities to cyber breaches. In truth, small businesses are just as much of a target as large corporations. Hackers know that smaller businesses don’t invest as heavily in security or stay informed about the latest exploits. And, best of all, they typically have a treasure trove of personal and financial information.
Consider the worst possible scenarios and whether your company can fight off the threats. Preparing the technology to thwart cybercrime is your first defense and having breach insurance should also be considered.
Here’s four reasons why you should invest in breach insurance BEFORE an incident… so you don’t end up as another cyber breach statistic as your last defense.
1. Hackers Could Compromise Personal Customer Data
Other recent data shows only 29% of U.S. businesses invest in cyber breach insurance. Considering hackers are always ahead of the game on compromising data, you could become a hacking target virtually overnight. What’s worse is that you may not realize you’ve been hacked until weeks or months later.
Once you find out, you may realize the stolen customer data was used to perpetrate identity theft. Recovering from this financially wouldn’t be easy without breach insurance, especially if you face litigation from unhappy authorities and customers
2. Ransomware Attacks
Another growing cyber breach category is ransomware, a type of malware that hijacks your network and demands digital cash in exchange for the keys to return your data to normal. Those who do this could keep hijacking your network, even if you pay the ransom. In the meantime, your business may not be operational for days or weeks and, in some cases, it might never recover financially.
Breach insurance helps you get back on your feet after experiencing a financial loss from cyberattacks.
3. Breaching PCI Standards
The Payment Card Industry Data Security Standard (PCI DSS) is a government regulation you may have to follow to ensure all credit card information stays safe. A hacking event could jeopardize this, leading to a major PCI violation. Costs can become steep as the credit card companies look to recover their losses. Increased transaction fees or even a loss of your ability to process credit cards may occur. With breach insurance, you’ll be protected financially from losses that could potentially place your business into jeopardy.
4. The Overall Cost to Small Businesses
Data recovery costs for small businesses now run up to $36,000, with overall losses averaging $50,000. A big business can overcome this expense, but many small businesses may not be able to sustain this loss.
For all of these reasons, data breach insurance makes a lot of sense. This insurance will keep the business stable when an attack is beyond your technological control.
If you are contemplating breach insurance be aware that the insurer will ask questions about the security of your technology environment. Depending on the answers, you could be turned down until the remedies are completed.
Typical questions include:
- How often do you review the rules within the firewall?
- Do you remove terminated employee access promptly?
- Do you have a written business continuity plan?
- Is sensitive data encrypted?
- How soon can you restore lost data?
- Is your network monitored in real time?
- Are your employees periodically instructed on their responsibilities in regard to information security?
A Technology Management company can prepare your environment to meet the requirements for breach insurance. They also provide ongoing monitoring and management which will protect you; but with today’s sophisticated hackers your business needs an array of protections to truly stay safe.