Cybersecurity Insurance, also known as Cyber Liability Insurance, is a specialized type of insurance that helps businesses recover from cyber incidents like data breaches and ransomware attacks. This coverage can assist with legal fees, notification expenses, and public relations efforts.
But is it necessary for your business? The short answer is yes, and here’s why.
Cybercriminals see SMBs as prime targets
Small and medium-sized businesses in Northeast Ohio are an attractive target for cybercriminals.
Unlike larger enterprises, SMBs often lack the financial resources and infrastructure to defend against sophisticated cyberattacks. According to Cisco research, a staggering 43% of cyberattacks target small businesses.
This statistic alone should raise a red flag for any small business owner.
Recovering from an Attack Can Be Expensive
Recovering from a cyberattack is not only stressful but also costly. Cisco’s research indicates that small businesses spend an average of $955,000 per attack to restore normal operations. Cybersecurity insurance can significantly reduce these costs, providing the financial support needed to get back on track quickly.
An Attack Can Damage Your Reputation
Beyond the financial impact, a cyber incident can severely damage your brand’s reputation. Trust is a fundamental pillar of customer relationships for many small business owners. A breach can break that trust, potentially leading to losing customers and even the possibility of permanently closing your doors. Reputation management and customer trust take years to build but can be shattered in a moment. Cybersecurity insurance can provide additional resources to help manage public perception and rebuild trust.
Cyberthreats are not going away
Cyber threats are becoming increasingly sophisticated. This means that even if you’re currently well-protected, there’s always a possibility of being outsmarted by new tactics. Investing in cybersecurity insurance not only helps protect your current operations but also future proofs your business against emerging threats.
Employee Education is Not Enough
While educating employees on cybersecurity best practices is essential, it’s not a foolproof solution. Human error remains one of the leading causes of security breaches. If your business handles a growing volume of sensitive information, consider that employee education alone may not suffice. Cybersecurity insurance acts as a safety net when other measures fall short.
Partner with an IT Consultant, Like AtNetPlus
We get it- Navigating the complexities of cybersecurity and insurance can be overwhelming. Partnering with an IT consultant, such as AtNetPlus, can provide the expertise needed to assess your current risks and implement strategies to enhance your cybersecurity posture. Our guidance can help you make informed decisions about your cybersecurity insurance needs.