Small business insurance
Cyber-attacks are on the rise and according to the government nearly three-quarters of small and medium sized businesses have suffered a security breach, meaning not only large businesses are under attack, but the companies who believe that they are safe from cyber-attackers are also under hackers watch, and so small business insurance is essential.
Why are small businesses without insurance a target?
Cyber criminals target smaller businesses because they are more likely to have less protection and security on their websites and IT systems, therefore making it easier for hackers to gain access to the system. Rather than the bigger companies with better security. The FSB report found that only a quarter of small and medium sized businesses have a strict password policy, enabling hackers to gain access to the majority of these smaller companies’ systems.
Phishing for small business
The FSB found that the most common cyber-crimes which are affecting the SME’s are phishing emails, malware attacks and ransomware.
Phishing emails is where an attachment on an email asks you to update your account details, with the attached link looking legitimate. Enabling the hackers to commit identity theft and gain other valuable/secure information.
Malware attacks are just as dangerous, by unknowingly clicking a link or downloading a malicious software can intrude in your company’s system and steal information which may be sensitive, extract money or send unwanted advertising.
Ransomware is where hackers gain access to the company to seize and encrypt data, then asking for a ransom. Making it hard for these small companies to respond to these requests.
Why take out cyber liability insurance?
If you own a business that either holds customer’s personal data, the process of card information from customers or it heavily relies on IT systems, then you will need sufficient cyber liability insurance. Even if you think that your business only has the names or email addresses of customers, this can still cause a damaging effect on your business if any hackers manage to hack into your computer system, or if your business experiences a data breach.
Cyber breach to small and medium sized businesses is a big issue and on average SME’s are paying out between £75,000 and £310,800 according to PwC, making this an expensive cost for SME’s to encounter. Therefore, getting the right cyber liability insurance is crucial.
By taking out cyber liability insurance, it enables businesses to have peace of mind for their company, therefore if anything does happen to the security of the business then you know you will be protected, and any money having to be paid will be subsidised by the insurance.
If a company does encounter a cyber-attack then they will have to rebuild the brands image and customer confidence, therefore with the right insurance, your business’ reputation would not be under attack.
Do you own a small or medium sized business and need cyber liability insurance? At Todd and Cue we offer all types of small business insurance for every aspect of your business, take a look at our SME insurance page for more information or email us on email@example.com.