Risk & Business Magazine Nesbit Agencies Fall 2019 | Page 13

CYBER LIABILITY PROTECTION
D
Why Even Small Businesses Need
CYBER LIABILITY PROTECTION
o you think your business is so small that it is safe
from cyber-attacks? No matter how small your
business, if you have a computer and a customer
list, you are vulnerable to being hacked. Most
hackers in this day and age realize that larger
organizations are taking every means possible to protect
themselves and their customer data with sophisticated
software tools and resident IT experts. So hackers have set
their sights on smaller, more vulnerable organizations. •
Disaster recovery costs, which may include expenses for forensic
accountants, attorneys, and advisors
•
Crisis management, to help contain any bad publicity stemming
from the breach
•
Social engineering fraud, which can result when hackers trick
trusted employees or vendors into disclosing sensitive information
•
Extortion, which includes threats by foreign entities that can only
be satisfied through large cash payments
A 2017 survey by Manta revealed that 87 percent of small-
business owners do not believe they are at risk for a cyber-
attack. Most of these businesses don’t have any dedicated
information technology personnel, and many don’t have
even simple means of protection in place, such as anti-virus
software, firewalls, spam filters, or data-encryption technology. Since cyber liability is a fairly new area of insurance and is changing
every year, be sure you work with an agent that is sufficiently
knowledgeable about this complex field. For more information or to
discuss your specific needs, please contact our agency at NesbitAgencies.
com/contact. +
Yet the problem is far from hypothetical. Research by the
National CyberSecurity Alliance shows that at least half of all
cyber-attacks now target small businesses, defined as those
with fewer than 250 employees. Even more alarming, multiple
reports show that half of all small businesses have already been
breached—often without even the knowledge of company
leadership. Sadly, about 60 percent of small businesses affected
by these attacks are so damaged that they end up going out of
business within six months.
Personally Identifiable Information (PII), including names,
addresses, driver’s license numbers, and credit card numbers
are all at risk as well as Protected Health Information (PHI),
such as medical records. Once an individual’s PII is stolen, it
can take years and countless hours of frustration to restore
the individual’s good name. A good information technology
consultant can help you take simple steps to protect your data
from these crimes.
A cyber liability insurance policy can help protect your business
financially in the event of an attack. Policies can differ widely
and there are no set minimum criteria, so you’ll have to work
closely with your agent to find the policy that’s best for your
organization. Here are some basic coverage areas to consider:
• Third-party damage covering violations committed by a
subcontractor you hire, such as a mail house or fulfillment
center
• Business interruption, in the event that damage to your
computer systems leaves your company unable to function
for some period of time
•
Credit monitoring services, allowing customers suffering
data exposure to periodically check their credit status
BETTER BOP
BRIGHTER TOMORROW
Your want to build the best future for your business.
So, we’ve enhanced our businessowners policies to
match. Trust in Tomorrow. ® Talk to an agent today.
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