New possibilities also bring new risks
Technology and the Internet have opened whole new worlds of business possibilities, adding new levels of efficiency, reach, and communication that afford a small business the ability to compete with much larger companies. That’s great! But there’s always two sides to every coin and the flipside is the exposure to cybercrime. On the great scale of business threats, cyber risk is a relatively new and emerging exposure, but it’s a whopper.
Regardless of size, all businesses are subject to cyber-attack. When we talk to some of our neighboring businesses in North Carolina and South Carolina, we often hear the mistaken assumption that they are too small to be on the radar screen for cyber criminals.
Nothing could be further from the truth – smaller companies are attractive because their defenses are often easier to breach.
Some industry sectors are obvious targets – financial and healthcare organizations, for example. In fact, medical identity theft is one of the fastest growing area of crime. But you are a vulnerable business if you collect and maintain data, if you conduct financial transactions, or if you store credit cards or other personally identifiable information. Speaking of personally identifiable data, if you keep electronic employee records, that makes you vulnerable. It’s the rare business that doesn’t have cyber exposure.
A costly crime
Costs and losses associated with data breaches can be staggering: liability; costs to recover/restore systems and data; business interruption; costs of legally mandated customer notification and remedies; fines or penalties; reputational damage, and more.
Data breaches frequently affect large numbers so get widespread news coverage, but they are only one type of cybercrime. Various types of fraud are on the rise – ransomware and cyber extortion, spear phishing, social engineering fraud, and funds transfer fraud. Sophisticated email spoof schemes that imitate a trusted authoritative party like the CEO are highly effective vectors of infection – everyone opens an email from the boss, right? In fact, your own staff are one of your greatest threats. Many problems begin with employee mistakes, lost or misplaced equipment, and a failure to take basic safety measures. Not to mention intentional data theft or damage by departing or disgruntled employees!
Many business people think that their existing insurance policies would provide protection in the event of a cyber-attack or data breach. While your current business coverage may address some costs, there are many costs that would be excluded unless you have a policy specific to cyber liability.
At Spivey Insurance Group, we are staying on top of this emerging exposure and the insurance products available to address this threat. We work with dozens of the nation’s largest insurers so can access the coverage that is right for your business.
Talk to us!
At Spivey Insurance, there’s nothing we are more passionate about than working with local businesses. The trust of our neighbors means everything to us. It’s the foundation on which we’ve built and grown our business over the years. We live by our honesty, our integrity and our expertise because we’re working hand-in- hand with you in our community every day.
We’d love to talk with you about the ways we can help you safeguard business with a cyber liability insurance. We’re happy to look over your existing policies and give you our analysis as to whether your business is adequately covered or has exposures through gaps that could be easily addressed. Drop us a note or ask for a quote. Better yet, give us a call 704-821-4460 or stop by our office.