Small businesses are targets of hackers and should be buying Cyber Risk Insurance (see prior posts here and here) along with instituting strong IT security. Small businesses may believe they can fly under the radar and avoid breaches, but the evidence would indicate otherwise (see here).
HSB ran a “hacker lab” to demo a small business hacking event and steps small businesses can take to protect themselves. (see here) A key takeaway – small businesses are targets and 50% of all small and mid-sized businesses have experience a breach:
In a study HSB conducted with the Ponemon Institute, we found that more than half of all small- and mid-sized businesses experienced a data breach and nearly three-quarters can’t restore all their data. The problem is big and growing. The good news is that businesses can take steps to protect themselves from destructive criminal intrusions.
Protective steps to take include:
- Outsource payment processing
- Separate social media from financial activity
- Think beyond passwords
- Stay informed; educate and train employees
- Encrypt data transmission
- Secure your browser, operating system, router and data
Cyber Risk Insurance has broadened significantly over the last few years and has developed into an effective insurance protection against damages from both hackers and employee errors. However, it should be secondary to appropriate levels of IT security.
Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of professional liability insurance (E&O, D&O, EPL, Cyber). We excel at hard to place accounts. Review our expectations here.