Cyber insurance may sound technical. The reason you might need it really isn’t.
Think about how much your business relies on technology during an ordinary day. You communicate by email, store information electronically, make or accept payments online and depend on software to keep things moving.
Now ask yourself: What would happen if you suddenly couldn’t?
October is Cybersecurity Awareness Month, making this a great time to understand the role cyber insurance can play in your overall business protection.
What exactly is cyber insurance?
Cyber insurance is designed to help businesses manage certain financial consequences of covered cyber incidents and data breaches.
Depending on the policy and circumstances, it may help with expenses related to investigating an incident, restoring data or systems, notifying affected individuals, responding to the incident and certain liability claims.
Because policies vary, it’s important to understand exactly what your coverage includes.
Does a small business need it?
Business size isn’t the only consideration.
Instead, think about the information and technology that your business relies on.
Do you keep customer or employee information? Accept electronic payments? Use cloud-based software? Let employees work remotely? Depend on email to communicate with clients or vendors?
If the answer is yes, cyber risk deserves a place in your larger insurance conversation.
What can businesses do now?
There are practical steps that can make a difference.
CISA recommends four core cybersecurity practices: avoid and report phishing scams, use strong passwords, require multifactor authentication and keep software updated.
For businesses, CISA also recommends measures including data backups, logging and incident-response planning.
I have an IT provider. Isn’t that enough?
A trusted IT provider can play an important role in preventing and responding to technology problems. Insurance plays a different role by helping address certain financial consequences associated with a covered event.
It’s not an either/or decision. Both can be pieces of a thoughtful risk-management plan.
Let’s make it easier to understand
Cyber risk can feel complicated, but deciding how to prepare for it doesn’t have to.
At Eaton & Berube, we believe people make better insurance decisions when they understand their options. If you aren’t sure how your current business insurance would respond to a cyber incident, start a conversation with our team. We’ll help you understand your coverage and decide what makes sense for your business.