Mitigate Cyber Risks with Cyber Insurance

By: Matthew Deighton January 5, 2021

I sat there in the back of a university lecture hall with the head of a major bank’s online security. A question came from the other side of the hall, “What’s the best way to keep our money safe online?” I grew up with technology and am quite comfortable with it, but his answer shook me.

“If you have online banking,” he said. “You will always be at risk to have your money taken.”

I was hoping for more of a vote of confidence from the person who oversaw the digital safe keeping of our money. But, he’s right. The strongest castle can be easily entered when the back door is left unlocked. With the average data breach costing $3.86 million ($242 per record), it’s more crucial than ever to protect your data and mitigate your cyber risk.

As a cybersecurity company, I wish I could say we can protect every company we work with 100%. But just like the executive from Wells Fargo said, if you’re online, you’re at risk. We can help you identify your risks, create a good cyber risk management plan, train your employees, and help secure your networks, but even the most careful driver can get in a car accident. One-third or more of all data breaches come from employee error or negligence. You’re going to want insurance.

Hackers are exploiting everything from a computer’s outdated software to an employee who clicked on a phishing email. Employees are the one part of your business that can be most difficult to fully protect from. Threats could come from an unsecure home network while working from home. Your son turned off the network security so he could download video game cheat codes…and now your business is exposed to ransomware.

6 out of 10 small businesses will be out of business within one year of a data breach. The government penalties, loss of clients and information are too much for many companies to bear. A Cyber Liability Policy can mitigate your risk and help keep your company alive. Reach out to your insurance agent to get a quote for your company.

A last bit of caution, read the fine print on your policy and make sure you’re eligible for a claim if a breach does occur. We’ve heard stories of companies being denied because they weren’t compliant with state or federal regulations.