It seems like not a day goes by when a new cybercrime or hack makes the nightly news. From large corporations, right down to the small businesses in your city, cybercrime is a huge problem. On a personal level, some of you may have already had your sensitive information, such as a credit card number or social security number, compromised in one of the hundreds of attacks over the past few years. If you are a business owner there are additional concerns and responsibilities in the case that your company experiences a data breach. Let’s take a closer look at how you can protect your business from cybercrime and how Phil Richard Insurance can protect you in the case that a malicious attack happens at your company.

Data Breaches for Small-to-Medium-Sized Businesses

There is a common misconception out there that small or medium-sized businesses are less at risk for cybercrime. This could not be further from the truth. In fact, 72% of all data breaches occur in small-to-medium sized businesses, mostly because they are an easier target due to smaller IT budgets or a false sense of security. Many of these breaches are caused by human error or system failure, but the remainder are usually caused by malicious intent.

How Can I Protect My Business?

While the statistics above may be a bit alarming, the good news is that there are steps that business leaders and owners can take to protect their companies. Tech experts suggest starting with a risk assessment to determine where the vulnerabilities are in your network. This will give you a good place to start and an idea of what to look out for in order to avoid hackers, viruses, and breaches.

IT experts will probably recommend having a training session for your staff since many issues are caused by human error. Training can help employees spot red flags on emails that indicate a phishing scam where a hacker may be trying to gain access to your data and use it in malicious ways. During training, topics such as using strong passwords, reducing access to only a few employees for the most sensitive data, and proper security protocol for storage, transferring, or deleting personal information can be discussed.

Business leaders can help protect data by updating all software and installing all patches in a timely manner so that the latest security is on your devices and computers. In addition to maintaining software updates, IT experts would advise that you upgrade your firewalls, encrypt your wireless network, and backup your data to a secure network or cloud.

What About A Cyber Insurance Policy?

After you have taken all the necessary steps to secure your company, many small business owners choose to invest in a cyber insurance policy. There are two types of losses your business is privy to in the face of a cyber threat: a first party loss (any loss suffered directly by your business), or a third party loss (liability you face to an outside party). Cyber insurance policies provide coverage to protect you in the case of either loss.

 

If your company handles sensitive information, talk to us about your cyber liability needs. Regardless of whether you consistently deal with protected data or not, cyber liability is generally accepted as a smart extra layer to add to your policy. Call Phil Richard Insurance at 978-774-4338. We are happy to talk to you and discuss how a cyber insurance policy can protect your business.