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Cyber-attacks are a growing threat for small businesses and the U.S. economy. According to the FBI’s Internet Crime Report, the cost of cybercrimes reached $2.7 billion in 2018 alone.  And small businesses consistently remain the #1 target.

Hackers can send phishing emails to employees, customers, and vendors in which they masquerade as your company.  If someone clicks the malicious link, hackers may gain access to accounts, data, and/or computers.  Or a hacker might use a virus or ransomware to corrupt your data.  Wi-Fi, IoT devices, and social engineering are a few of the many other methods criminals attempt to compromise our data.

The main way to protect yourself against cyberattacks is with strong internal safeguards.  Cyber Breach Insurance is a safety net for when strong internal safeguards are not able to keep hackers out.

Cyber insurance can cover the numerous costs resulting from a data breach, virus, or other cyberattack:

  • Legal fees
  • Cyber breach investigators
  • Credit repair assistance
  • Public Relations
  • Lost business
  • And in a worst-case scenario, ransomware payments.

The reality is, while cyber insurance can be helpful, it is no substitute for having proper security policies and training in place and making sure they are followed. Security should be the number one boardroom agenda of any business. Insurance companies MIGHT NOT PAY if your organization did not implement adequate safeguards for their data, and they will certainly require verification of certain protocols during the application process.  You may even be able to reduce your premiums by showing proof of high security standards.

Cyber Security Insurance is a relatively new and evolving area of insurance. Reach out to your current Commercial Liability carrier.  If you need a referral for a reputable provider feel free to reach out to our team.

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