As a small business owner, you may believe your company is just too small to be hacked; however, with the number of cybersecurity breaches on the rise, small businesses are at an increased risk today more than ever.
6 Reasons Why Cyber Insurance is Critical for a Small Business
Hackers may steal employee information, customer credit card numbers, and other valuable information from your computer systems, taking advantage of the lower security environment of many small businesses. To see exactly how many NH small businesses have been impacted by a data breach, you can look at the extensive list of security breach notifications on the NH Department of Justice website.
If your Bedford business is one of the more than 100,000 small businesses in New Hampshire, here are 6 reasons why you need cyber liability insurance to protect your company from an expensive cyber-attack:
1. Your business liability policy will typically exclude the costs associated with a cyber breach
While business liability insurance can cover a broad range of risks like protecting your company from lawsuits due to personal injury or property damage, it will most likely not protect you if your information is compromised. This protection requires a separate Bedford cyber insurance policy.
2. The cost of a data breach can easily cost more than $500,000
When information within your company is compromised, you are required by law to promptly notify those affected or potentially affected, including clients, prospects, and employees. Ideally, you will also pay for identity theft monitoring for affected persons for at least a year for PR reasons. The government may also levy fines and penalties, which vary depending upon the state(s) where you operate the business, your clients are located, or where your employees live. These costs can add up quickly and are potentially devastating for your business. Data loss could also cripple your ability to continue to conduct business until the system is restored, impacting your bottom line even further.
3. No business is too small to be hacked
Short of the neighborhood kid's lemonade stand, any small business that stores valuable information, including social security numbers, credit card data, or essential business information, is at risk. If a hacker perceives your Bedford small business as an easy target, he or she will not hesitate to steal whatever info has potential value.
To see if your business needs to improve its online security, take the Cyber Risk Pressure Test offered by HPM Insurance partner, Travelers. This test helps you better evaluate how at risk your small business is to illegal hackers.
4. Small businesses increasingly rely on computers, network connections, and mobile equipment
After a global pandemic, you would be hard-pressed to operate a competitive business without a computer system, network connection, or online presence. If you are going to use these technologies, it's important to take precautions. Using anti-virus and malware software as well as frequent password changes can help protect your business up-front, while NH cyber liability insurance will help protect you if your business's data is compromised.
It is also important to have a written office policy to inform employees how best to utilize company mobile equipment like laptops, mobile phones, and tablets. All employees should be aware of what can and can not be sent and worked on over an unprotected network.
5. You can reduce the risks and insurance costs by practicing responsible network usage
The risk of an attack goes down if you take precautions against it. The first step is being aware that you are at risk. Using secure passwords and changing them frequently, and keeping software up-to-date, your company may be harder to attack. Your cyber liability policy may receive discounts if you can show you consistently adhere to safe usage practices.
6. Cyber Insurance provides peace of mind
Like any natural disaster, there is only so much you can do, and still, disaster can strike. It is comforting to know that you can have many of the expenses covered by a cyber-attack with a cyber liability policy. This can include notification and credit protection for affected parties, data restoration, forensic investigation, lawsuit costs, business interruption, and other expenses.
Keeping up with the times
The New Hampshire economy thrives on small businesses - and so do hackers. As attackers get more and more sophisticated and steal information from highly protected government agencies and large corporations, it is easy to see how small businesses may be an easier target. With the cost of an attack so high, cyber insurance can help protect you and your business from financial devastation. Contact HPM Insurance today for a quote!