Cybersecurity insurance has become an important consideration for all organizations including small and midsized businesses. Many small businesses assume that cybercriminals are only interested in targeting large organizations, however, in recent years, larger organizations invested heavily into their cybersecurity. The result is that many hackers are redirecting their efforts towards small businesses with weaker IT infrastructures, who still possess valuable data.
What is Cybersecurity Insurance?
Cybersecurity Insurance eliminates liability from damages which occur as the result of a cyberattack. This includes ransom payments, regulatory fines, public relations costs to restore reputation, employee/customer lawsuits and lost income as the result of a breach.
What Cybersecurity Insurance Don’t Cover
Cybersecurity insurance policies do not cover prior acts of which you had knowledge before you started your policy. They also may not cover business interruptions which have been caused by a third-party computer system failure.
Who Needs Cybersecurity Insurance?
In industries with strict regulation on collected data, like healthcare or finance, cybersecurity insurance becomes exponentially more valuable because of the unforgiving nature of such industries.
If your business collects sensitive data such as credit card numbers, account numbers, Social Security numbers or medical records, you’re likely a target for cybercriminals.
Because of the relatively low cost of cybersecurity insurance, it is smart for all small to midsized businesses to consider this type of insurance coverage because it will allow for significant peace of mind in relation to the monthly costs.
Why Are We Sharing This Information With You?
While ITC is in the business of offering IT-related products and services, we think it’s important to help our fellow entrepreneurs become more productive and thrive. A cybersecurity insurance policy gives small business owners the peace of mind they need to focus on what matters the most, growing their business. Cybersecurity insurance policies allow them to mitigate their risk in the short-term, while allocating a budget for improved IT and network security improvements.
If you would like to discuss an improved IT and network security environment, please call ITC at 845-561-4440 or visit us at itc-communications.com. We would be happy to help you create a plan that can be either implemented right away, or one that you can budget for future implementation.
