Small Business, Big Risks: Protect Your Company with Cyber Insurance

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Owning your own business comes with a mix of several risks and rewards. One significant risk today is cyber attacks. In 2020, small businesses around the world faced over 700,000 cyber attacks annually, leading to a loss of $2.8 billion in damages. Thankfully, we’re here to help you decrease the risk of these threats. In this article, we’ll answer all of your questions about cyber insurance, including the cyber risks that are out there and how your business can benefit. Let’s dive in!

What is Cyber Insurance?

Cyber insurance is designed to protect your company’s online presence and lower the financial risks linked to cyber threats. It can help with security costs, data recovery, and even ensuring that your business has strong defense systems in place for the future.

What does Cyber Insurance Cover?

Cyber insurance policies typically cover a range of cyber-related threats, including:

  1. Data Breaches: A data breach occurs when a hacker steals sensitive information, such as customer data or employee records. This information can be sold on the dark web, leading to significant financial repercussions. Cyber insurance will contribute to reducing this risk, but will also handle customer notification methods if a breach occurs.
  2. Damaged Equipment: Cyber attacks can affect your tech and equipment, causing malfunctions or damage. Cyber insurance can help cover the repair or replacement costs.
  3. Ransomware Attacks: In a ransomware attack, a hacker might take control of your network and demand payment or services for the return of your data. In 2023, over 72% of businesses worldwide were affected by ransomware attacks, a number that rises year-by-year. Cyber insurance can assist companies in recovering their information and minimizing losses.
  4. Emerging Threats: With the rise of AI, new cyber threats are evolving that can impact your business. These include AI-generated phishing scams, cloud security risks, distributed denial of service attacks, and more.

Who Can Benefit from Cyber Insurance?

Do you store customer data digitally? Does your business use third-party payment systems? Do you store sensitive customer information, such as credit card numbers and personal information? Are you protecting customer information across multiple platforms? If you answered “yes” to any of these questions, you should consider protecting your data with cyber insurance. 

Cyber threats are not just a concern for large enterprises. Small and medium-sized businesses are often prime targets for hackers, who see them as easier targets due to their weaker cybersecurity defenses and limited resources.

Why Does My Business Need Cyber Insurance? 

You might be asking yourself, "Why does my small business need cyber insurance?" We’ve pulled together some shocking statistics from leaders in cyber-research industries that might change your mind. Here’s the facts:

  • “45% of organizations [have reported] experiencing third-party-related business disruptions in the last two years”, and this number is continuing to grow (SentileOne).
  • This year (2024) compared to last (2023), there has been a 92% increase in encrypted threats, an 84% increase in ransomware attacks, and a staggering 1,265% increase of phishing attacks, driven by the rapid growth of AI technology (SentileOne).
  • For ransomware, over 70% of attacks were reported by small and medium-sized businesses (SentileOne).

Adding cyber insurance will allow you to focus on growing your business, rather than worrying about potential threats. 

When is a Good Time to Add Cyber Insurance?

For adding a cyber insurance policy, there is no better time than now. Cyber insurance protects you from online threats that you cannot see, so securing coverage as soon as possible will save you from unexpected data breaches later on down the road. The threat level continues to rise as the digital world grows for businesses, making timely action essential.

How Valentine Can Help

Don't wait until it's too late. Whether your company is just starting out, or you’ve been flourishing for years, our team is dedicated to making sure your growing business and employees are secure with the coverage you need.

At Valentine Insurance Services, you can trust us to keep your business safe. Are you ready to protect your business from cyber threats? Contact us today to add cyber insurance coverage to your plan to avoid future complications. 

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