Does My Business Need Cyber Insurance?

As the digital age evolves, business owners must understand the benefits of having a robust cybersecurity strategy. Putting cyber protection on the backburner, waiting for an incident to happen and then taking action is an approach we don’t recommend. It’s always better to be proactive rather than reactive when it comes to safety and security defense.

Did you know that there are (on average) 2,200 cyber-attacks each day? In fact, a cyber attack typically happens every 39 seconds! In the United States alone, the typical cost of a data breach is estimated to be $9.44 million. And let’s not forget the new wave of cyber threats due to advances in AI technology.

Even if you have that kind of cash lying around, suffering such an unnecessary loss would be a tragedy for any business. Financial ruin, destroyed reputations, and closed businesses could all be avoided with the proper security measures in place. With business up against constant evolving threats and having so much on the line, strong cybersecurity measures have become absolutely essential.

Protecting Your Business in a High-Risk Digital Landscape

Not sure what your vulnerabilities are, or what your workplace needs to be successful? Don’t worry, the cyber experts at CN are here to help! Today’s focus is on cyber insurance. Cyber liability is a major buzzword we are seeing all over the place, but many SMB’s aren’t sure what this actually means and how it can help their business. The first thing to keep in mind: cyber insurance is just a piece of the puzzle.

An effective cybersecurity plan needs to incorporate several layers of protection at every level, including the latest security solutions for your company devices, network, infrastructure, and so forth. A holistic approach to cyber security takes a look at the bigger picture. This includes implementing measures like zero-trust, threat detection, IT security, employee training on the best practices, and even considering cyber insurance as a safety net.

But you can’t just choose one, all of these aspects are needed to work together in securing your SMB from all angles! Let us show you how to keep your workplace secure, your data safe, and your reputation & finances safeguarded against cyber attacks like ransomware and data breaches.

What is Cyber Insurance?

You may be wondering, “What is cyber insurance? Does my business really need Cyber Liability Protection?” We’ll break down everything you need to know. Simply put, cyber insurance is a type of insurance that protects businesses from losses resulting from cybercrime.

Cyber insurance provides financial protection and it’s an essential layer of safety if you’re operating an online business – as the risk is far larger for digital companies than  brick-and-mortar locations.

Wondering if your business needs cyber insurance?

The answer is a resounding yes! While Computers Nationwide specializes in Managed Cyber Security, we do also recommend finding a cyber insurance policy. View this as a safety net to protect your business from any unexpected financial losses that may arise from a cyber-attack or data breach. It can also provide coverage for any consequential losses, such as interruptions in service, damage to reputation, or liability to third-party claims.

What exactly does cyber liability insurance cover?

Generally, it covers the costs of restoring data, investigating the cyber-attack, providing customer notification, and reimbursement for related costs. It may also provide defense and settlement costs in the event of any legal claims from a data breach.

However, it does not cover the damage caused by viruses, malware, data corruption, or other malicious activities. Depending on the policy, it may also exclude certain types of cyber-attacks, such as social engineering. These exclusions are uncommon and vary from policy to policy depending on the insurance provider, so keep in mind your cyber security must-have checklist and what works best for your business before enrolling in any cyber insurance plans.

Where Managed Cyber Security Services and Cyber Insurance Meet

When it comes to protecting your company’s digital assets and confidential information, the two most essential services to consider are managed cybersecurity solutions and cyber liability protection. Combining these two solutions can help protect you from malicious cyber attacks, data breaches, and pretty much any online threat…AND the consequences in the case that something slips through the cracks.

This includes safeguarding you from cyber liability. Managed cybersecurity services provide a more proactive form of defense that prevents cyber-attacks from happening in the first place. Cyber insurance, however, provides financial protection against losses incurred as a result of a cyber-attack in a rare case that something was missed or resulted in human error.

“Even if a business might not want to purchase cyber insurance, they should, at the very least, have policies and guidelines in place to educate their employees and include procedures for managing attacks when they occur.” Forbes

Securing Your Organization’s Assets from All Angles

Both of these services work hand-in-hand when it comes to safeguarding your data and protecting your business. Being proactive is an invaluable approach for business continuity and long-term success! At Computers Nationwide, our professionals offer Managed Cybersecurity and IT services to businesses throughout Chicago, Wisconsin, and Indiana. Our goal is to help SMB’s and enterprises alike stay protected against the latest threats.

“Data breaches are one of the top concerns for today’s organizations. The costs of these breaches continue to increase, with the average global cost of a single breach hovering at $3.62 million. Beyond the financial consequences of a breach, network security is also hugely important for any business because an attack can compromise the trust of your customers. 60% of small companies go out of business within six months of falling victim to a data breach or cyber attack. With both the financial security and future of your business on the line, it’s crucial for organizations of all sizes to have measures in place to monitor suspicious network activity.” Cybercrime Magazine

Understanding the Value of Cyber Security Solutions

Managed cybersecurity services target threats and check for suspicious activities before they may occur. It generally consists of a scalable suite of tools, processes, and training that monitor your networks for potential threats and actively help to stop cyber attacks in their tracks.

Cyber insurance comes into play as a backup plan “just in case” – an investment in financial stability in the event of a data breach or cyber-attack, regardless of whether it was prevented by managed cybersecurity or not. A comprehensive cyber-defense strategy involves understanding what your vulnerabilities are and how to patch them.

Benefits of Cybersecurity for Businesses of All Sizes

By having a robust cybersecurity plan, you’ll have peace of mind knowing that any asset your company has or anyone you deal with has been vetted by your security approach. This positions your business as a reliable and trustworthy entity in the market, promoting safety and trust for all parties involved. When it comes to cyber security tips, it’s important to recognize the impact a business’s data collection can have on the general population. If a company experiences a data breach, it can lose all credibility in the eyes of its customers. The loss of sensitive data is also an issue that can result in legal action against the company, further damaging its reputation.

Nowadays, companies should treat cyber attacks not as a matter of “if” but “when.” The risks are too great, and the losses can leave even the richest business executives bankrupt if they’re not careful. Having a team of cybersecurity professionals in your corner enables you to create backups and restore them in case of an attack. This is especially helpful in ransomware-based attacks, where critical data is held hostage, or general service shutdown attacks, where a system exploit has occurred due to a recent version or release. Knowing that your company is in safe hands is invaluable!

If you need expert assistance in designing the best cyber defensive strategy, Computers Nationwide is ready. We can teach your team the best cyber practices to combat threats and offer custom-fit security solutions that protect your organization’s interests. Time is ticking and hackers are hacking, don’t delay!

What’s your best bet at stopping bad actors in their tracks?

Choose Computers Nationwide as your trusted technology advisor and leave the rest to us!

Contact us today to get started: (847) 419-9900