According to Accenture, information, or data, is the most costly component of a cyber attack. Losses associated with cybercrimes reach $5.9 million each year. In addition to that, 50% of the big companies spend $1 million each year on cyber security.
Cybercrime and security are still relatively new concepts that are often ignored by business owners. However, businesses stand to lose a lot in the event of a cyber attack.
Most of the time, cyber crimes are committed by either programming geeks, professional hackers, or the people you trust most: your employees. Always avoid clicking on suspicious links as they could be malware or viruses. Sites that are not secure should be avoided at all costs as you never know when the hackers will strike.
The easiest way of knowing whether a site is secure is by installing a firewall to your computer or watching out for a padlock-like icon at the top part of each website you visit. Finally, ensure all your passwords remain private, and if any breaches are detected, change them immediately.
The impact of a cyber-attack shakes the whole business to its core. The following are some of the common effects of a cyber attack:
Dented Business Image and Reputation. The first and probably the most affected part of your business is reputation. While big businesses and brands have an easier time recovering from a cyberattack, small businesses find it hard to gain clients' confidence and trust.
Financial Losses. If hackers manage to bypass your banking credentials, all your money is wired to their accounts, leaving you with a financial loss that you may never recover from. What's most devastating is that your bankers will never be held liable provided the recommended protocols and procedures were followed.
Client Data. When your clients' data, whether financial or otherwise, is compromised, no amount of defense will redeem your situation. Whether or not you have put all security measures in place, your company will be faced with financial claims from debit and credit card providers, the customers, and the state itself. The only way out of such a sticky situation is to shield your business with cyber liability coverage.
Business Productivity. Without an effective cyber threat response policy in place, you may end up spending too much time trying to prevent cyber crimes instead of attending to your clients. In the long run, your business pays the ultimate price.
Loss of Potential Clients and Revenue. With a bad reputation, your clients may shy away from recommending potential clients to your business. Even when they believe that you were innocent, it may still be hard to make recommendations. Since new clients are the source of revenue, lack of recommendation would lead to loss of potential revenue.
One way or another, and regardless of size, all businesses are vulnerable to cyber risk, and the bigger your business is, the more vulnerable it is. Unfortunately, cyber crimes have become commonplace, hence, the need to secure yourself; start with cyber liability insurance information.
Did you know that more than half of businesses have encountered cybercrime at some point? On top of that, 53% of those companies have experienced multiple breaches. The good thing is that there's a practical solution for businesses faced with cyber threats, and it's called cyber liability insurance.
Cyber liability insurance is simply coverage against loss arising from an information breach or any claims arising from virus attacks. Even for small businesses, a cyber attack is a real threat. Most small business players dismiss it as a thing for the big and "successful businesses."
However, the reality is that they also handle sensitive client data that could result in losses when it falls into the hands of malicious people. CoverWallet provides insurance services, including cyber liability insurance in New York and to businesses in the surrounding areas.
You may be asking yourself why do I need cyber liability insurance in New York? In simple terms, all businesses do. Most small businesses focus too much on the growth of the businesses and ignore other crucial components of the business that are critical to its success.
Cybersecurity is one such ignored component. With such mindsets, small businesses become easy prey for cybercriminals. Hackers and cybercriminals know that small businesses have less to no data security controls in place.
First and foremost, cyber liability insurance covers damages arising from a data breach. These damages include lost earnings, extortion, and even the damaged reputation of your business. In addition to this, cyber liability insurance covers the loss of your clients as a result of the data breach.
In simple terms, our cyber liability insurance covers you and any third parties affected by a data breach or cybercrime.
Typically, electronic data cover (EDL insurance) is added to the policy that covers a business owner. However, most businesses, especially the small ones, prefer when they're not combined. Moreover, there easy policies to guide through when selecting the appropriate coverage for your business.
When choosing an insurance plan, you should consider the size of your business and how much exposure it has. On top of that, consider the industry and the model your business specializes in.
Specialized services may affect the final cost of your policy. To reduce premiums, small businesses should strive to adopt effective security policies and measures.
In these times of ever-changing and advancing programming languages, hackers are capable of anything. Unless you're vigilant by adopting the current cybersecurity trends, your business might not be able to survive in the fast-paced business environment.
Nowadays, business owners fear hackers more than burglars. While burglars may make away with merchandise, hackers may cause irreversible financial damages to the business, all at the touch of a button. However, business owners can combat cybercrime. Here are some examples of ways you can protect your business from cybercrime:
Invest in Proxies and VPNs. VPNs and proxies create a secure connection between end-users. In other words, they act as the middleman between your gadget and other internet users. Besides hiding your location and protecting your data, mobile proxies and VPNs give you the perfect online anonymity. Before investing in a proxy or a VPN, evaluate the needs of your business and go for the best solution.
Encryption and Backup. When dealing with a client's information, whether sensitive or otherwise, be sure to encrypt and back it up. Data is arguably today's most valuable asset of a business, and safeguarding it should be prioritized. Fragment your data into several segments and hide it in different sources.
Even when hackers manage to bypass your security barriers, they will never access all your data as it's stored in various places. Encrypt data to make it useless for the hackers even if they manage to steal it.
Updates to Software. Did you know that failure to update your software regularly may expose you to cyber attacks? Hackers take advantage of the code defects in your software and gain access to your valuable data. Take time to update software and keep cyber crime at bay.
Limit Administrative Rights to Business Computer. Malware gets into a network due to negligence and the installation of software that may cause an attack on your network. Ensure that you limit the administrative rights to prevent unauthorized downloads.
Training and Education. Even when the latest technology is adopted in a company or a business, it's wise to ensure your employees are trained to help promote the company's cybersecurity policy. Investing in quality firewalls and antiviruses is okay, but without a trained team, technology may not be of any help to your business in the long run.
Unlike in the days past, a full-proof cybersecurity system is incomplete without cyber liability coverage. Even with all security measures in place, hackers keep upping their game by inventing new ways of bypassing security barriers.
However much you think that your data is secure, the likelihood of a data breach cannot be eliminated, which makes investing in cyber liability insurance prudent.
The success of a business is dependent on many factors; data protection and security are part of it. At CoverWallet, with the help of a professionally trained and experienced team, we ensure our clients get the right advice on how to choose a perfect policy for their cyber liability insurance.
With our budget-friendly rates, you can never go wrong. Talk to us today about cyber liability insurance in New York, and secure your business against cybercriminals and hackers.