Why cyber security is a problem for small business owners

By October 9, 2019 Personal Insurance
Why cyber security is a problem for small business owners

And cybersecurity tools to help you protect your business.

There are over 170 different insurance companies now offering some form of cyber insurance product for small businesses. No two insurance forms are the same and the incident response services can be dramatically different.

However, several select insurance companies now offer clients many tools to not only reduce the threat of a cyber attack, but also mitigate the size of the asset damages if a breach occurs.

Note: An insurance advisor will help you analyze your cyber security risk and help you choose the right insurance protection for your business.
Who’s at risk?

Small businesses are being targeted by cyber criminals more frequently due to their perceived lack of defense for cyber threats. Most small businesses have not developed an appropriate breach response policy and procedure, nor have they identified an individual within their organization to manage cyber security.

Note: These cyber threats include malicious software like malware and ransomware attacks which may lead to a data breach.

What’s at risk?

Sixty percent of small businesses will not survive a serious cyber incident in the first year and another 20 percent will close within two years.

Note: The average incident response costs for all businesses and revenue size is above $500,000.

The largest cost is the forensics investigation, followed by credit monitoring and notifications, legal expenses, business interruption expenses and crisis response.

All businesses that are operating on the internet, and are part of the supply chain of large companies, should be concerned about potential cyber threats. Also, businesses offering services to larger target businesses (vendor risk management) can be the route for criminals to break into a larger database.

What should you do to protect your business?

Cyber Security Risk and Operational Resilience must be a priority and included in any Business Information Risk Management Plan and Disaster Recovery Plan.

Note: Every organization has a finite limit of resilience and you need an insurance company partner to assist you when you experience a cyber attack. That is the reason a well- designed Cyber Risk Insurance Policy is critical for all businesses.

Your incident response team from your insurance provider should include a mobile app for immediate notification. The first 48 hours of a cyber attack are the most critical and a quick response can significantly reduce the size of the economic and reputational loss.

The response team should include services for computer forensics, notification services, legal and regulatory communications, public relations and cyber extortion and ransom negotiations.

Gain real time access to cyber thread data.

Fill out this quick form for access to The Chubb Cyber IndexSM. This tool provides you with real time access to proprietary data, giving you insight into current cyber threats and how you can protect your company against them.

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