Why Do Small Businesses Need Cyber Liability Insurance?

Topics: Agent Resources Cyber Liability

Think your small business client is safe from hackers? Think again. Cyber crooks target small businesses at a higher rate than larger businesses, says a 2014 report from cybersecurity firm Symantec.

In 2013, 60 percent of cyber-attacks detected by Symantec’s Global Intelligence Network struck small and medium-sized organizations.

But many small business owners don’t think it will happen to them. A 2015 article from Information Age shows that 82% of companies with up to 10 employees believe they are not a target for cyber-attacks because of their smaller company size and assets.

So why do cybercriminals seek out small businesses? They're often easy targets. Small businesses are often prey for identity thieves because they typically have less security in place than larger companies. Don't let your client's business be a target! Set them up for success with Cyber Liability Insurance from AmTrust Financial.

What Do Small Businesses Have to Lose?

Reputation

Probably the most critical potential consequence of a data breach is damage to the company’s reputation. While major retailers like Target and Home Depot may be able to bounce back from that type of hit, small businesses can have a harder time winning back customer trust.

Customer Financial Data

If financial information is compromised during a breach, your business could be hit by heavy fines from credit and debit card companies. This is particularly true if the company was not fully compliant with requirements from the PCI Security Standards Council, a global forum for implementation of account data protection measures.

Productivity

If you don’t have a detailed breach response plan, your client could be focusing on the breach instead of serving your customers. In the end, their business suffers.

Stolen Funds

If your client's business computer system is hacked and cybercriminals make a false wire transfer using their online banking credentials, the bank is not responsible for lost funds, as long as they followed the proper security protocol on their end.

How Can My Clients Prevent and Prepare?

  • Have a breach response plan: The sooner your client alerts stakeholders, the better the outcome.
  • Have a breach response team: A cross-functional team coordinates efforts across the company.
  • Establish data encryption: This is critical to keeping sensitive data safe.
  • Train employees on hacking trends / prevention: People are key to prevention and preparedness.
  • Get cyber liability insurance coverage: When a breach happens, company assets will be covered.

While there’s no way to guarantee your clients won’t get breached, there are steps your clients can take to reduce the cost if a breach does occur. Clearly, the best way to mitigate the cost of a breach is to be prepared: secure the business, get a plan in place, and make sure everyone knows their role in preventing and responding to a breach.

Agents can provide clients peace of mind that their business and its assets will be protected with a Cyber Liability Insurance policy from AmTrust Financial.

Copy

Time Zones

13

Countries

34

Brands

12

Agents

9500