Technology has changed the way even the smallest businesses operate. Email, electronic payments, online banking, customer records and cloud-based programs are now simply part of doing business.
Along with that convenience comes another risk to consider: what happens if you suddenly can’t access those systems or information?
October is Cybersecurity Awareness Month, making it a good time to review both your cybersecurity practices and your insurance protection.
What is cyber insurance?
Cyber insurance is designed to respond to certain costs and liabilities resulting from covered cyber incidents.
Depending on the policy and circumstances, coverage may help with expenses related to investigating an incident, restoring data and systems, notifying affected individuals, responding to an event and certain liability claims.
Policies vary, so understanding your specific coverage matters.
Cyber risk isn’t just a “big business” issue
CISA cautions that businesses shouldn’t assume they’re too small to be targeted.
For a small business, the more useful question may be:
How dependent are we on technology to operate?
Think about the systems you use during a normal workday. Could you conduct business without email? Process payments? Reach customer records? Access schedules, project information or financial records?
Understanding that dependence can help you better understand your risk.
What can you do to protect your business?
There are simple places to start.
CISA’s core recommendations include teaching employees to recognize phishing attempts, requiring strong passwords and multifactor authentication, and keeping software updated.
It also recommends additional measures for organizations including backing up data and developing an incident-response plan.
Where does insurance fit?
Cybersecurity and cyber insurance serve different purposes. One helps you reduce risk; the other may help address certain financial consequences if a covered incident occurs.
Your insurance agent can help you understand your existing business policies and whether cyber coverage belongs in your insurance program.
At Knapton, Reade & Woods, we believe good insurance starts with understanding your risks and your options. If you’re unsure how prepared your business is for a cyber incident, we’re here to help make sense of the insurance side of the conversation.
