Should Your Business Have Cyber Insurance? Probably.January 17, 2020
It’s a little cliché, but when it comes to running a business, it’s wise to hope for the best while planning for the worst. If you have any amount of important data online (and you probably do), then one of the worst things that can happen is suffering a breach/hack/etc.
That means you need to be prepared.
According to a 2019 study, CEOs see cybersecurity as the biggest threat facing the world economy over the next decade. It doesn’t matter what size your business is. Many hackers use bots that scrape the internet blindly, looking for exploits in any system they come into contact with.
These bots don’t know how big you are or how much money you have. They just want into your system. Since small-to-mid sized businesses tend to have less security protocols in place, they can be more likely to become victims of these bots.
The first thing you should do is to setup proper cybersecurity defenses. This includes antiviruses, firewalls, strong passwords, proper access privileges, multi–factor authentication, and more. Additionally, you should strongly consider ongoing monitoring so that you know immediately when something goes wrong.
But even the best defenses have flaws. One of the most common is simple human error. Everyone makes mistakes, and while there are steps you can take to decrease human error, there’s never a guarantee.
With the average cost of a data breach standing at a massive $3.86 million, businesses should keep themselves protected from the worst case scenario.
That’s where cyber insurance can help.
How Cyber Insurance Works
As you might imagine, cyber insurance looks like any other insurance. If you experience a breach, your insurance kicks in, helping to cover the damages. The money you receive from your insurance policy can help pay for computer forensics, identity protection services, public relations support, data recovery, ransom payments, and more.
Cyber insurance is fairly new, and policies can vary from provider to provider. It’s important to understand what your policy covers and what it doesn’t.
If you store any amount of company, financial, and/or client data online (and you probably do), it really is in your best interest to get cyber insurance. Ultimately, it’s something you hope you never have to use.
Having a great cyber security strategy in place can help with that. At Expedient Technology Services, we provide a range of cyber security and technical support services in Cincinnati and Dayton, Ohio. While we do agree that cyber insurance is a great thing for modern businesses to have, we believe it’s more important to first take care of how your data is stored, protected, and accessed.
Contact us today and experience the peace of mind that comes with Stress Free IT®.