These days it seems like technology improves by leaps and bounds. Unfortunately, as technology advances, so do the scams and attacks that target businesses and individuals. As such, it is essential to do everything possible to protect oneself.

There are multiple ways to protect a small business from cyberattacks, and frankly, a combination of these methods should be applied. All companies (especially those that deal with sensitive information) should have encryption, policies to follow, and IT trained to combat the latest methods of attack. Finally, never forget to consider signing a business up for cyber insurance.

What is Cyber Insurance?

Cyber insurance is a specific form of insurance specifically designed to protect small businesses against cyber risks. That is to say; this insurance exists should the worst-case scenario happen.

In this instance, the worst-case scenario would be a data breach, ID theft, or something similar. Should this happen (and should a business be insured), the cyber insurance would payout to help mitigate the costs of cyberattacks. 

Other Benefits

These days, most cyber insurance companies do more than simply hand out funds following a successful cyber attack. They’ll go above and beyond to help recover any lost or stolen data, track down stolen devices, and help businesses follow the proper notification procedures.

Cyber Risks

The sad truth is that small businesses, in particular, must defend themselves against cyber attacks. They should also prepare for those measures to fail, even if it is only ever intended to be a failsafe.

According to reports, up to 60% of small businesses go under within the first six months following a successful cyber attack. This is primarily due to the financial and societal pressure placed upon them. Through the use of insurance, at least one of those concerns can be mitigated.

Small Business – Big Target

Some small businesses may mistakenly believe that they are safe and that cybercriminals would prefer to go for the ‘bigger fish in the pond.’ While they’re not wrong that bigger businesses offer larger payouts, they are mistaken in believing that they are safe.

Small businesses are frequently seen as easy targets, especially in the cyber world. They typically don’t have an entire staff for cybersecurity and thus have more potential flaws within their system.