Cyber threats are no longer just a concern for large corporations. Businesses of all sizes can be targeted by phishing emails, ransomware, fraudulent wire transfers, data breaches, stolen credentials and other cyber-related incidents.

In fact, smaller businesses can be particularly attractive targets because they may have fewer cybersecurity resources or less sophisticated security systems in place. A cybercriminal doesn’t necessarily need to break into a complex network. Sometimes, a single compromised email account, stolen password or employee clicking on the wrong link can create significant financial and operational problems.

A cyber incident can do more than disrupt your computers. It may interrupt your ability to communicate with customers, process payments, access important records or conduct everyday business. Depending on the circumstances, your business could also face costs related to investigating the incident, restoring data, notifying affected individuals or responding to potential claims.

Before a cyber incident happens, take time to:

✔️ Train employees to recognize phishing and suspicious emails

✔️ Use strong, unique passwords and multi-factor authentication

✔️ Keep computer systems, software and security programs updated

✔️ Regularly back up important business data

✔️ Limit employee access to sensitive information

✔️ Establish procedures for reporting suspicious activity

✔️ Review how your business handles customer and employee information

✔️ Create a plan for responding to a cyber incident

✔️ Review your cyber insurance coverage, limits and deductibles

Cyber Insurance Can Be Another Layer of Protection

Even with strong cybersecurity practices, no business can completely eliminate its cyber risk. Cyber insurance can help businesses respond to the financial and operational consequences of a covered cyber event.

Depending on the policy, coverage may address expenses such as data recovery, breach response, notification costs, cyber extortion, business interruption and certain liability exposures. Policies can vary significantly, however, so it’s important to understand what your coverage does—and does not—provide before an incident occurs.

It’s also important to recognize that cyber coverage isn’t simply something to purchase and forget about. As your business changes, your technology, employees, vendors, data and potential exposures may change with it. Your insurance program should be reviewed regularly to make sure it continues to reflect the way your business operates.

Cybersecurity and Insurance Work Together

The goal isn’t to choose between cybersecurity and cyber insurance. You need both.

Strong security practices can help reduce the likelihood and severity of an incident, while appropriate insurance can provide another layer of protection when something goes wrong. Together, they can help your business be better prepared to prevent, respond to and recover from a cyber event.

At Haughn Insurance, we look beyond the policy to understand how your business operates, identify potential exposures and help you build an insurance and risk-management program designed around your operation.

Cyber risk is constantly evolving. Don’t wait for an incident to find out where your coverage may have gaps.

Prepare today. Protect your business tomorrow.