Top Cyber Threats Facing Small Businesses and How Insurance Can Help

Cybersecurity is a growing concern for many companies, including small businesses across various sectors. As technology becomes more central to daily operations in the modern business world, the risks and potential consequences of cyberattacks and data breaches continue to rise. Small businesses cannot afford to take these threats lightly or cut corners on insurance, as many hackers and cybercriminals have increased attacks on such companies in recent years.

Common Cyber Threats for Small Businesses

Small businesses are often targeted by cybercriminals because they may lack the resources for robust cybersecurity. Understanding the following common threats may help your company and employees be prepared to repel or avoid them:

• Phishing attacks—These fraudulent emails or messages are designed to trick employees into revealing sensitive information or clicking on malicious links.
• Ransomware—This is a type of malware that can lock your data or systems until a ransom is paid, often causing significant downtime and financial loss or even leading to blackmail.
• Data breaches—Unauthorized access to customer or employee data can lead to identity theft, regulatory fines and reputational damage.
• Business email compromise—Hackers may impersonate executives or vendors to trick staff into transferring funds or sharing confidential information.

How Cyber Liability Insurance Can Help

Cyber liability insurance, also known as cyber insurance and data breach insurance, is designed to help your business recover from the financial and operational impacts of a cyber incident. These policies can be a critical element of your business insurance package. While exact policy details can be customized, your coverage may help pay for the following:

• Incident response costs, such as helping to pay costs for notifying affected parties and credit monitoring
• Ransomware and cyberextortion payments, including meeting the demands of perpetrators
• Business interruption losses, such as compensation for lost income if your operations are disrupted by a cyberattack
• Legal expenses, including attorney fees, settlements and judgments, should affected parties sue your business for failing to protect their data

How to Get the Right Coverage Near You

If you’re looking for cyber liability insurance in Batesville, Greenville, Grenada & Oxford, MS, the team at Insurance Solutions Center has the knowledge and resources to help. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.