We live in a digital world. Almost every aspect of our lives incorporates the use of technology. Even the smallest main street businesses that once relied almost exclusively on foot-traffic, community support and word-of-mouth advertising are increasingly embracing and implementing digital infrastructure into every phase of their operation.
As digital technology continues to permeate society, the efficiencies and opportunities it creates come with inherent risks. Here are a few questions you can ask yourself to see if your business is at risk for a cyber incident:
- Do you have information on a customer or employee in your care, custody, and control?
- Do you have customers?
- Do you use a bank account?
If you answered "yes" to any of the above questions, then your business is at risk for a cyber incident.
Growing and evolving cyber threats and events, such as the CrowdStrike glitch – which wasn't a malicious action - crippled digital infrastructure across industries and serve as stark reminders of the need to prepare for the unexpected.
Cyber insurance is long past being considered an emerging line of business. It has been around more than 30 years and is critical protection for 100% of small businesses.
Business owners curious about their cyber vulnerabilities should take the following actions today:
- Conduct a cyber risk assessment: Identify and evaluate the specific cyber threats your business faces. It's important to be educated on all aspects related to your vertical. There is no one-size-fits-all approach. Understanding your business' specific vulnerabilities should be your priority.
- Consult with a cyber insurance specialist: Partner with an insurance professional who understands the nuances of your niche and is committed to finding the best coverage for a premium you can afford. The cyber insurance specialist should be able to proactively offer recommendations relevant to your unique needs and be able to tailor your policies accordingly. Similar to fire insurance coverage being standard for brick-and-mortar businesses, coverage for your business' specific cyber vulnerabilities should be standard.
- Implement robust cybersecurity measures: Insurance is a safety net, but prevention is key. Invest in employee training to mitigate risks. Their awareness and vigilance against cyber threats is your first – and often best defense – against bad actors.
The reality is when a small business without proper coverage experiences a cyber incident, there's a good chance that the business will never recover. Sometimes the top reason for declining cyber coverage is the cost, particularly for small businesses. However, when considering the range of cyber incidents your business could face – and the havoc the myriads of business interruptions your business could be exposed to – the need to establish and maintain adequate cyber protection becomes obvious. The risk to the longevity of your business is too great to ignore.
