5/10/2022
Why Small and Medium Sized Businesses Need Cyber Insurance.
Small and medium sized business are the most at-risk market segment to cyber-attack and do not generally have the infrastructure and vigilance capability to thwart cyber intruders. Larger companies have the funds to invest in IT personnel or an IT team, better preparing them for best practices against cybersecurity. Cybersecurity demands honest conversation. Bad actors’ want the easiest path to getting paid, period. Bad actors’ main mission is to leverage sensitive information, such as financial data, debit/credit card details, and personal information to identify an individual in some way and turn that into financial gain. Alternatively, sensitive intellectual property is often targeted, such as trademarks, copyrights, patents, or trade secrets.
Businesses that manage confidential client information must protect this data as it is constantly at risk.
The ramifications of these attacks have grown beyond an individual’s social security information. Much more is at stake for hospitals, legal professionals, financial institutions, and anyone who stores or interacts with data that is important to protect. Financial institutions must keep funds safe, government must keep weapons safe, towns must keep water safe, etc.. This list could go on and on, but the point is that individual and business safety is threatened with cybercrimes every day.
Businesses need to understand that it is not a matter of “if” but “when” a potential cyber-attack could take place. The best defense against business risk associated with a cyber “event” is having ALL aspect of the business proactively prepared.
Prepare with cybersecurity insurance:
There are financial implications to your business if a cyber-attack occurs, Cyber security insurance will help recover costs associated with an attack and recovery, easing the financial burdens of business interruption, lost revenue, loss of data, legal expenses, data recovery, cybersecurity forensics, and dealing with law enforcement.
Prepare with a strategic technology partnership:
Qualified IT Solutions Company relationships will reduce the risk of attack to begin with because if systems are properly and proactively maintained, the risk of attack is dramatically reduced.
If a security breach is to occur, your IT Solutions Company is a strategic partner at every step of the Cybersecurity Business Continuity Plan (BCP) as this relationship will significantly increase a business’s chance of recovering with swift response and execution. It is much better for small and medium sized businesses to have a trained partner (and team) in a cyber-attack or ransomware situation, than to search for this partner after the attack has taken place. Options rapidly deteriorate as time passes following a breach. The longer an attack goes on, the more damage is done.
Simply taking out a cyber insurance policy won’t protect your business from a cyber-attack. To properly protect your organization and your clients, businesses need a proactive comprehensive risk management plan.
Insurance Companies require Cybersecurity Business Continuity Plans, See our blog for advice and required information.
Take out 5 minute, high-level Cybersecurity Risk Assessment
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Choosing the correct IT Solutions Company is vital. It is not just the technology, but also the people and process in place that increase your cybersecurity protection. This means that there must be constant monitoring and proactive maintenance taking place. If an IT Solutions Company is continuously buried in service tickets, they will not have the time, nor discipline, to apply timely patches and other vital actions – and this will leave a business vulnerable.
We are always available to answer your questions. Please call us at 508.375.6444