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Mar
23
2015

Cyber Risks and Cyber Liability Insurance

What is Cyber Liability? 

Businesses are relying on technology to function more and more as time goes on. This comes with an increase in risks as well. Unauthorized access to your computer system or a stolen laptop could leave vital information from your business or your customers exposed, and that can be costly to recover from. The risks aren’t limited to stolen data, though. Your Coverra agent is familiar with the potential areas of risk and will discuss those with you as they may relate to your business. Cyber liability insurance covers a wide range of cyber exposures that a traditional business liability policy almost never covers.  For example, in the case of a natural disaster or accident which leads to data loss, traditional insurance may cover the cost of new storage equipment, but not the loss of revenue that could be caused by losing sensitive information. 

What makes small businesses especially vulnerable to cyber risks?

Are you operating under a false sense of security?

With the recent breaches that Target and Sears suffered, cyber crime has been brought to the attention of many people and businesses as a real issue. Many people seem to believe that being a small business makes you safer because of less exposure, but this isn’t true. A hacker would rather target smaller businesses with fewer measures set up to protect them than go after a large organization with many defenses set up.  The statistics regarding small businesses believing they are safe from data breaches or viruses is very high, up to 85%. Even more frightening is the number of smaller businesses who do not have an off-site backup and a disaster recovery plan in place. Because of this, it’s extremely common for businesses to operate without a formal security policy for employees, and only roughly half of them have any kind of cyber security defense. 

10 actions to protect yourself in addition to insurance

A very important step to take is to bring in a cyber-security expert to find vulnerabilities and help solve them. Sometimes businesses aren’t able to afford that method, though. Here is a list of strategies that you could employ right away to help reduce your risks:

  1. Formal employee training in cyber-security
  2. Regularly update antivirus software for your business network
  3. Ensure you have a firewall for your Internet connection
  4. Apply software updates and patches routinely
  5. Have a data backup plan and disaster recovery plan
  6. Have a security and network access policy and plan; make sure you control access to data needed for job performance
  7. Password-protect your Wi-Fi network access
  8. Make sure each employee has their own login account and enable log tracking
  9. Have a password policy (a complex password) in place and require regular changes to those passwords
  10.  Test your network and Internet for vulnerabilities randomly to find and prevent data breaches.

Protecting your data and the data of your customers is key to a successful business.  This year, make cyber-security one of your top priorities.  Contact us for more information. 

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