When you make any sort of transaction or conduct business online, you want to make sure it's safe. The same type of thinking goes for your customers; if they think your electronic offerings are spammy, they're not going to do business with you.
If your company's sensitive information has been stolen and customer accounts hacked and your business is without cyber liability insurance coverage, good luck avoiding bankruptcy. Cyber liability insurance fights for you and your company in the cyber war and saves you in the wake of the aftermath. Not sure what type of policy is right for you? Below you will be able to more closely examine some of the more popular cyber insurance packages and learn why they are a business favorite.
The General Scoop: Cyber Insurance
Cyber insurance is, in its loosest definition, an insurance coverage policy that protects its holder against cybercriminals attempting to steal electronic data. According to Time Magazine, cyber hackers cost the United States over $300 billion every year. Worldwide, cyber attacks cost a whopping $445 billion.
In 2013, cyber attacks cost small business owners close to $9,000 on average. In 2014, 60 percent of cybersecurity breaches happened to small businesses.
Why Are Small Businesses Being Targeted?
Business New Daily reports that as of 2016, 50 percent of small businesses have been successfully breached. The reason for the attacks is simple: small businesses are easy targets. Unlike big corporations, small businesses generally don't purchase enough cyber insurance (if any insurance at all) as they believe hackers only go after the big guys, as was seen with Target and Home Depot. This isn't true. The New York Times reveals that corporations like Target and Home Depot have the financial strength to upgrade their security and prevent future attacks, small businesses do not. If a small business does not have cyber insurance to help pay for legal fees, recover lost data and seal network security holes, they're opening themselves up to financial ruin. If your company were hit today, could you compensate for the damages?
Network Security Policy
Commonly referred to as NSP, the Network Security Policy is a cyber insurance type that outlines the general criteria for computer network access. This includes defining the elementary electronic architecture of business network security.
This cyber insurance type helps small business owners maintain lawful conduct within their business dealings through the constant checking and researching of industry laws, regulations and bank policies. This policy keeps track of any law changes and informs the company if their business model needs adjusting.
Risk Management Policy
This cyber insurance type identifies cyber threats to the company's electronic network and helps to assess and control said threats to the small business reputation and capital. By alleviating the risk of a cyber attack, your company will stand out as trustworthy and loyal to its customers.
Cyber insurance protects your business when you can't. You can't be everywhere at once, and the one time you're not paying attention, a hacker will strike. Go to CyberPolicy.com to find out more about our cyber insurance and cybersecurity offerings.