Smaller businesses tend to overlook things like cyber liability insurance. They believe that since they’re not a huge conglomerate, they don’t have any of the information in their systems that hackers want. However, this isn’t true at all.
Since small companies are less likely to have their servers well protected, they are an easy target for hackers. Combined with the rise in ransomware, it’s clear that your business needs some protection from cyber thieves. So, in honor of cybersecurity awareness month, here’s what you need to know about cyber liability insurance.
A Rise in Ransomware
The statistics about ransomware are jarring. According to one study, published by IBM, the amount of groups running ransomware schemes went up by 56% in 2024. Looking into it further, in 2023, 70% of all computer hacking attacks globally consisted of ransomware, and the total amount of money received by cyber-attack groups from these ransomware attacks topped one billion dollars.
What does this mean for you? Your small business’ information is in trouble, and without having properly protected servers and employee training to catch these attacks, your company could be the next in line. Thankfully, there are three solutions to the problem: proper training, a stronger and more secure system, and cyber liability insurance.
The Role of Cyber Liability Insurance
Cyber liability insurance is designed to help your business by reducing the fiscal impact of a cyber-attack. If, for example, a cyber-criminal hacks into your server and holds your computer systems hostage, demanding money to release them, you’re going to have to reach into your bank account. That is, unless you have cyber liability insurance, which would cover the payout and the money needed in order to get your systems properly secure once again.
In addition to this, a cyber-liability insurance policy may cover the following:
Public Relations – You will need to send your customers a notice that their information may have been compromised, as well as place some public articles on various parts of the internet about the crime, just in case your customers don’t receive that notice. This costs money, especially if you need to hire a PR professional to do the job. A cyber liability policy can help with this.
Cost of Interrupting Your Business – A cyber-attack can leave your company unable to function while your server information is being held hostage or has otherwise been corrupted. While your business is down, it isn’t making any money. Your cyber liability insurance may cover the costs incurred by this lack of functionality.
New Server and Better Security – After the attack is over, you will need professionals to rebuild your server, as well as secure it to prevent additional attacks. This insurance policy can pay for both of those.
Contact Spivey Insurance
Do you need cyber liability insurance to protect your business? Are you wondering if one of these policies would be right for your company? If so, contact Spivey Insurance. Our skilled and knowledgeable agents can answer all of your questions and help you choose the right policies with insurance amounts to fit your company’s needs.