I find it fascinating …
I have been immersed in the insurance industry for close to 30 years now. I serve on industry boards, I speak at conferences and my clients consist of businessmen from Fortune 500 companies to the Mom and Pop shop down from our Corporate Headquarters. I have sat with entrepreneurs that are just beginning in the world of small business, to executives who have 40 years in their chosen industry. They often inquire as to my opinion on insurance for their company and I am happy to give them advice and recommendations.
But it is simply fascinating to me that often when I mention Cyber-Security Insurance, businessmen that I am speaking to, often look at me with confusion, unsureness and complete doubt. It seems to me, that many business people, I talk to, are under the false impression that:
*We are too large to have any security issues – Our company has invested into the most sophisticated firewalls and blocking mechanisms currently available for our information systems. It is like a “moat” with a dragon guarding the gates.
*We are too small. I have a corner store in a rural town and most of my business consist of costume jewelry and handbags. No one would ever target us. Why would they bother?
According to a recent survey from Small Business Trends, as of the beginning of 2016, 75 percent of businesses in the United States have NO cyber risk insurance. “That’s according to the identity protection firm IDT911, which just released a new report showing most small businesses in the U.S. are highly unprepared in all phases for a cyber-attack and have no plan in place if such an event were to occur.”
Business owners will invest Worker’s Compensation, Business Auto and Builders Risk. Their businesses are prepared for fire, flood or employee theft lawsuits, but many businesses think they do not qualify for, or are immune to, cyber theft.
And this is startling because 1/3rd of the businesses surveyed replied that would have an almost impossible time, “sustaining company operations without access to critical business systems that would be compromised during an attack.”
So what do advice do I give clients when they shake their heads to cyber?
I ask them if they have formed a Cyber- Attack Plan for their Company? What simple steps can you take to at least prepare in case their data is held for ransom (Ransomware)? Are employees aware on how to protect their data? Do they take simple steps to back up their data? Do they invest in the latest security software and firewalls to keep thieves at bay?
And even with all of that. Every step taken to prevent data theft. What will you do if you a breach occurs? 90% of businesses in the U.S. have experienced a data breach. Many do not even know that they have been breached, yet.
One of the most startling statistics that is being discussed in the insurance industry is the 60/6 Rule. The alarming fact that 60% of businesses that experience a cyber-attack are not in business six months after the breach is discovered. They cannot operate without their data, (which has been compromised) or their clients (which will avoid them and possibility sue if their personal data has been jeopardized).
But you can count on worrying much less, and feeling a bit more secure, if you just consider Cyber-Liability Insurance. It’s not that expensive. And will save you tens of thousands, if and when a cyber breach occurs.
Reach out to me. I would love to discuss this issue with you, discuss possibilities, give you advice and help you secure your business.