Why Startups Need Cyber Insurance

Cybercrime is a constant threat that affects web users of all stripes including consumers, small businesses and enterprise giants. But did you know that small businesses are actually more likely to be hit by cyberattack? It's true!

Small businesses are especially vulnerable because they house a trove of valuable personal and financial data; and because they often lack the staff and resources to defend against attacks in the same way that large companies do. This is even more the case for fledgling SMBs, also known as startups.

Startups are nimble, fast-moving businesses that can't afford business losses and downtime due to cyberattack. Luckily, you can improve the resilience of your startup by investing in cyber coverage insurance from CyberPolicy.

Let's take a quick look at a few of the scenarios that sink startups and what you can do to stop them.

Business Downtime
Startups need to move quickly if they want to succeed against competitors both large and small. But it's hard to do that when hackers are holding you back. In fact, distributed denial-of-service (DDoS) and ransomware attacks are specifically designed to bring your operations to a grinding halt. This can result in hundreds or even thousands of dollars in business downtime or extortion fees. Yikes!

You can dodge these scams by investing in DDoS mitigation services that detect and stymie malicious traffic; and by avoiding emails, attachments and downloads from unfamiliar sources.

Stolen Proprietary Information
To remain competitive, startups need to offer something unique and innovative to their industry. Sometimes these proprietary ideas or technologies are closely guarded secrets. Well, at least until a cybercriminal breaches the firewall.

Once a hacker infiltrates your network, they will seek out everything of value. They may steal this information to sell on the dark web, or they may extort you for thousands of dollars for the safe return of the data. Either way, it's bad news for your startup.

Protect your most valuable information by saving data to an encrypted cloud storage container or in-house database.

Loss of Customer Confidence
Some hackers are more interested in pilfering personal or financial data from your customers which can really cause problems for your company down the line. Who wants to do business with a startup that leaks customers' personal information?

Remember to keep sensitive data out of the hands of hackers by hashing and salting highly sought information including passwords, email addresses, Social Security numbers, bank account numbers and more. That way, even if your files are breached, it will be harder for cyber crooks to make sense of the stolen data.

Total Takeover
Startups vary in size and structure. Perhaps your startup has 100 dedicated in-house employees or maybe your staff is closer to a dozen workers scattered around the country.

Either way, one of the dangers of having such a small team is that newbie companies sometimes keep data in communal digital spaces. This makes sense for employees because it allows easy access for everyone in the company. The trouble is that if a cybercriminal hacks just one employee, they suddenly have access to everything!

Don't let this happen to you. Silo important information, such as financial records, to only those employees who absolutely need access to perform their duties.

But even if your business is hacked, don't worry. CyberPolicy has your back. Cyber coverage insurance will ensure your startup can financially withstand cyberattacks and data breach.

Not only is cyber coverage affordable, it is the right investment to keep your startup, your customers and your workers safe from harm. Visit CyberPolicy for your free quote today!

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