3 steps to protect small businesses against a cyber incident

We live in a digital world. Almost every aspect of our lives incorporates the use of technology. Even the smallest high street businesses that once relied almost exclusively on foot traffic, community support and word of mouth are increasingly embracing and implementing digital infrastructure into every phase of their operation.

As digital technology continues to permeate society, the efficiencies and opportunities it creates come with inherent risks. Here are some questions you can ask yourself to see if your business is at risk for a cyber incident:

• Do you have information about a client or employee in your care, custody and control?
• Do you have clients?
• Do you use a bank account?

If you answered yes to any of the above questions, then your company is at risk of a cyber incident.
Growing and evolving cyber threats and events like the CrowdStrike bug—which was not a malicious act—have crippled digital infrastructure across industries and serve as stark reminders of the need to prepare for the unexpected.

Cyber ​​insurance has long since been considered an emerging line of business. It’s been over 30 years and is essential protection for 100% of small businesses.

Business owners curious about their cyber vulnerabilities should take the following actions today:

1. Conduct a cyber risk assessment: Identify and assess the specific cyber threats your business faces. It’s important to be educated on all aspects of your vertical. There is no one-size-fits-all approach. Understanding the vulnerabilities specific to your business should be your priority.
2. Consult with a cyber insurance specialist: Work with an insurance professional who understands the nuances of your niche and is committed to finding the best coverage for a premium you can afford. The cyber insurance specialist should be able to proactively provide recommendations relevant to your unique needs and tailor your policies accordingly. Similar to fire insurance being standard for brick-and-mortar businesses, coverage for cyber vulnerabilities specific to your business should be standard.
3. Implement robust cybersecurity measures: Insurance is a safety net, but prevention is key. Invest in employee training to reduce risks. Their awareness and vigilance against cyber threats is their first – and often best – defense against bad actors.

The reality is that when a small business without adequate coverage experiences a cyber incident, there is a good chance the business will never recover. Sometimes the main reason for declining cyber coverage is cost, especially for small businesses. However, when you consider the range of cyber incidents your business could face – and the disaster of countless business interruptions your business could be exposed to – the need to establish and maintain adequate cyber protection becomes apparent . The risk to the longevity of your business is too great to ignore.