6 Problems with a Business Not Having Cyber Insurance

6 Problems with a Business Not Having Cyber Insurance

Cyber insurance is more than just quality cyber security. Taking out cyber insurance can protect you from the legal and financial hazards of a data breach. Loss of data can do a great deal of damage to your reputation, your bottom line, and your expected schedule.

1. Your Data is At Risk

Data breaches caused by phishing can do a lot of damage in a short amount of time. Having the right cyber insurance in place to make sure that your data is protected in the event of a successful phishing attack.

As soon as possible, make sure your cyber security training is up to date. Take the time to also bump up your cyber barriers to make sure your employees are protected as well as being fully trained.

2. Your Client Data is At Risk

Third-party data loss is also a large risk. If you’re working on a client’s data to complete an in-depth financial or design project, a cyber attack on your business may cost them data security. Once their data is compromised, your ability to get another client in that industry will quickly be limited.

3. Your Reputation is On the Line

If you’re the owner of a retail business and you capture data from credit cards and bank accounts, one data breach can make your business a pariah among your customer base. Getting cyber insurance in place before you get that first credit card is just as important as putting security measures in place.

4. Your Business Schedule is Vulnerable to Disruption

A data breach can bring your business calendar to a screeching halt. You may not be able to address your own balance sheet. You won’t be able to send out invoices or apply payments. You will be paying many people their hourly wage to overcome the breach instead of doing their job.

5. You May Need to Ransom Back Your Data

Capturing data for ransom has become quite lucrative for hackers and phishers. Even if you don’t ransom the data back, hiring a cyber security firm to untangle and unlock your data will be extremely costly.

Again, training is key. Additionally, working with a cyber security professional to make sure that your data is as protected as possible is critical to your business security.

6. You May Face Legal Action

If your failure to secure the data provided by your clients leads to their loss of security, you may face legal action. You may also face regulatory action if your business cyber practices has not be up to snuff.

Perhaps you don’t know what new regulations include. This is a red flag symbol that you must invest in both cyber insurance and an assessment by a data security professional. Not knowing what current regulations require may be an indication that your data, your client data, and your reputation are all at risk.

Your data is a moving target for people who have the time and the skills to access that critical information. Plan ahead with cyber insurance to protect the future of your business.