What is the biggest risk to your business? Fire? Theft? Vandalism? These are all real concerns, and things that the insurance industry has decades of experience dealing with. But the biggest threat out there right now is cyber attacks on your business. The average cost of damages caused by a cyber attack on a small-to medium sized business is $879,582. Most businesses are totally unprepared for these attacks, which can come out of nowhere, and have been increasing rapidly in the last year.

With a Cyber Insurance Policy, you can stop worrying about hackers, and get back to running your business.

Ransomware

2021 was the Year of Ransomware, with several major ransomware attacks making the news, like the Colonial Pipeline attack that led to gas shortages across the East Coast.

What is Ransomware? It is when someone else—a hacker—gains access to your computer or network, and installs a malicious program that either encrypts all of your data so that you cannot use it, or threatens to release or sell that information on the dark web, or both. If you have any sensitive client information stored on your computers, this is a disaster.

The “ransom” part of ransomware comes in where that hacker then demands that to avoid these outcomes, you pay them. This is usually done with a cryptocurrency that makes it very difficult to trace them, and can range from thousands to hundreds of thousands of dollars, with the average being $570,000 as of this year.

How does a ransomware attack start?

The most common way for an attacker to gain a foothold in one of your systems is through a phishing email. You’ve probably gotten an email like this before. Usually, the email is trying to get you to click on a link or open an attachment. The sender might claim to be someone you know, or be connected to a company you do business with. The tone will usually be urgent, trying to get you to rush into clicking the link or file.

From there, malware is installed on your computer, without you knowing it, that gives the hacker the power to hold your business hostage. They will then lock you out of your computer, and display a message with their threats, and their demand for payment.

Phishing is not the only way these hackers attack, although it is still the most common. As more and more devices are gaining internet connectivity, as a part of the “internet of things”, there are now many more attack surfaces to defend, with more exploits that can be used to compromise your computers. Your printers, routers, point of sale devices, card readers, even smart TVs and smart lighting can be a vulnerability. If it connects to the network in any way, its a potential vulnerability.

How do I protect my business from

You can’t just unplug from the internet. More and more of things you rely on for business are connected. Instead, there are two things you need to do to protect your business from cyber threats today.

The first is start practicing better security. There are some very simple steps you can take to immediately reduce your risk.

1. Use a modern, updated browser, like Google Chrome for everything. Older browsers, like Internet Explorer contain vulnerabilities that can be exploited by hackers.

2. Always update your machines. Software companies are uncovering new vulnerabilities to their programs all the time, and regularly release security updates to remove those vulnerabilities as they are found. It is vital to keep all of your systems running the latest updates to applications and operating systems.

3. Be cautious with email. Email phishing is still the top method for hackers to get in with, because it sidesteps needing to find a software vulnerability, and exploits human vulnerability. Look out for red flags in emails such as misspellings, poor grammar, awkward phrasing, or a sense of urgency to “act now”. For a full guide to looking out for phishing, check out our blog post on the topic.

The second thing you can do is buy a Cyber Insurance Policy. No defense is airtight, and even if your electronic defenses are, the human factor will always be a concern. People make mistakes, and one wrong click could let a hacker in unnoticed. It is crucial to back up your defenses with a full-featured, dedicated Cyber Insurance Policy that will spring into action the moment a threat is detected.

How does Cyber Insurance Work?

If you have a claim, your cyber policy gets to work immediately. As soon as the insurance company is notified of the incident, a team of trained, experienced professionals springs into action. This team includes incident responders who get to work restoring your computers, as well as professional negotiators who will communicate with the hacker, if necessary, and even pay a ransom up to the limits of your policy, if there is no other way to restore your systems or prevent the release of sensitive data.

When you have a cyber policy, filing a claim is like dialing 911. It is how you get the help you need fast. One in Five small businesses will be victim of a cyber attack, and 60% of those will go out of business within 6 months. A Cyber Insurance policy can be the difference that keeps your business alive after such an attack.

The good news, is that we can issue you a policy today, and premiums are much more affordable than you might think. Don’t leave your business’s future up to chance.