Many people might ask themselves if cyber security insurance for small businesses is necessary. Cybersecurity attacks on huge global corporations are regularly hitting the news headlines. As a result, small business owners often develop a false sense of security when it comes to the threat of cyberattacks, as they expect cybercriminals to go after those with vast resources at their disposal. Unfortunately, however, the risk such an attack poses to small businesses is just as severe as it is for large corporations. Even worse, the effects of the cyberattack can be far more devastating for a small business than for a large organisation. The Cyber Crime Magazine reported that 60% of small businesses ceased trading within 6 months of a cyber breach.
Below we are discussing the key benefits of specialist cyber insurance which smaller companies should be giving serious consideration.
The Benefits of Cyber Security Insurance
1. Peace of Mind
One of the most beneficial parts of having good cyber security insurance is the peace of mind it provides. A specialist policy is designed with a business’s particular risk factors in mind which take a huge weight off the shoulders of the owner. This enables business owners and management teams to relax while being confident in the knowledge that cyber security risks are under control. Therefore, businesses can be more ambitious and make better use of their resources at their disposal.
2. Gets Your Business Back in Action Quickly
In recent year, the number of cyber-attacks which were targeting small and medium-sized businesses has increased rapidly. Unfortunately, cybercriminals have identified weak points within the security of smaller companies and are therefore exploiting these vulnerabilities in greater numbers than ever before. While cyber security policies cannot stop these attacks from taking place, they can certainly limit the impact one of these attacks has on your business.
For example, policies can help ensure your business is back up and running quickly after an attack. Some cyber-attacks, such as ransomware, can cause massive disruptions to business, with companies effectively grinding to halt as a result.
Ransomware can be described as a particularly malicious form of hacking, where a file is downloaded onto a company computer. This file then denies all access to the data therein. Hackers hold that data to ransom, offering to only unlock and give access back, once a sum of money is paid. This type of hacking is becoming increasingly popular, and the methods used to insert the ransomware files are becoming more and more sophisticated and are changing with increasing frequency.
In order to protect your business from these types of attacks, specialist policies are designed to help in such a situation by putting processes in place to get the company back on its feet as quickly as possible.
3. Helps Protect Your Reputation
Cyber-attacks are not only responsible for causing business interruptions, but they can also have a catastrophic impact on a company’s reputation – negatively affecting the trust the company has fought so hard to build over the year.
Data leakage, for example, can be particularly damaging to the company’s reputation. If customer data is stolen or leaked, there are several ways in which cyber security insurance can help. For example, policies can put your business in contact with specialist incident response teams who can provide a whole range of services reaching from cyber forensics to legal representation over public relations support.
If you are looking to increase the cyber security protection for your business and you want to find out more about the ways you can protect your small business from cybercriminals, then contact us now.