October is Cybersecurity Awareness Month and it’s the perfect time for you to focus on protecting your business online. The recent cyber attack against T-Mobile shows that it can happen just as easily to large businesses as it does smaller ones. Knowing this, protecting your business is critical.
That’s where getting Cyber Liability Insurance can help you. Getting the insurance can help you handle the financial consequences that could arise should something happen to your systems or your data.
You need to prepare for the worst case scenario, which can include these specific threats against your business.
Data Breaches
A data breach is a type of cyber threat that can happen when sensitive data is either exposed and or stolen.
What can cause a data breach? Ransomware is one way it can happen. However, the most common way might be through phishing attacks. A survey released recently found that 73% of organizations surveyed had experienced a data breach because of phishing attacks.
Phishing can occur when an attacker spoofs an email address to make it look like an email came from a co-worker. The attacker uses social engineering to get the victim to turn over sensitive information or even download malware into the system.
Data breaches are becoming more common in the healthcare sector and they even happen in the financial industry. The bad news for you is, if it can happen to them, it can happen to you. More than 40 percent of data breaches happen to small and medium-sized businesses.
One study found that a data breach can cost a small-to-medium-sized business up to $149k. Most businesses underestimate that figure, but it can result in your business shutting down within six months.
Ransomware
Ransomware attacks are some of the most common to happen online. It’s a type of malware that can encrypt all the files on your computer and your network, while also locking you out. Cyber criminals do this to get victims to pay a ransom to decrypt the files and free up the systems. Typically, this ransom is demanded in the form of cryptocurrency.
Some ransomware attacks can have a demand of more than $170k for larger businesses. For smaller ones, however, that number averages out to $5,900, according to one study.
With cyber threats like ransomware and phishing, it can be difficult to thwart them. You can have the best cybersecurity setup possible. However, even the best hockey goalie lets a puck sneak past them occasionally.
Mistakes can happen to your business and some of them can be costly. Cyber Liability Insurance can help you lessen the damage that can occur.
Non-Cyber Threats
You don’t need a ransomware attack to shut down your systems. Sometimes it could be something more physical like a fire on the premises, or weather disasters.
Natural disasters might not be the thing you think of when it comes to cybersecurity. However, it is an issue. It’s not just about the physical location. If your network goes down, you’re going to have a hard enough time getting it back up.
Hurricane Ida has reportedly cost businesses at least $27 billion. Last year’s Derecho in Cedar Rapids, Iowa cost businesses around $133 million. Not having a disaster recovery plan in place can be costly.
When your business experiences that kind of interruption, it’s good to have Cyber Liability Insurance. Time lost to downtime is ultimately a loss in money. That’s not always money you can get back.
Contact Chastain Otis
If you’re hoping to keep your network and data safe from all threats, both cyber and non-cyber, then you need Cyber Liability Insurance. Contact Chastain Otis Insurance Agency today if you need help finding a policy.