Businesses worldwide are constantly being targeted by cyber criminals. Statistics show that the average ransomware payment stood at $4.7 million in 2022, highlighting the substantial financial risk your business faces without appropriate cybersecurity measures. No matter the size of your company, the impact of a cyber-attack can be catastrophic, making it imperative to secure your business against such threats with cyber liability insurance.
What Are Cyber Attacks?
A cyber-attack is an assault carried out by a cyber criminal using a digital device against other digital devices, such as computers and networks. A cyber-attack can maliciously disable your computers, steal critical data, or use a computer they’ve hacked as a launch pad for other attacks within the network.
Cyber criminals employ various methods, with the most common ones including phishing (the practice of sending fraudulent emails pretending to be from reputable companies), malware (malicious software), and denial-of-service attacks (flooding networks with traffic to render them unusable).
The aftermath of cyber attacks on businesses is typically severe, encompassing monetary losses and significant reputational damage. Cyber-attack victims often experience loss of business, exposure of sensitive client data, and expensive recovery processes, underscoring the critical need for cybersecurity measures.
Importance of Cyber Security in Business
Protecting your networks and databases is an integral part of cyber security. Set up robust firewalls and implement data encryption protocols to minimize the risk of cyber criminals accessing your confidential information. Make your Wi-Fi network password-protected and hide it from public view. Also, be selective about the information stored in the company databases.
Your employees can be the strongest line of defense against cyber attacks. Educate them on the importance of keeping sensitive information secure and how to do it. Establish clear policies outlining acceptable and unacceptable practices to minimize the risk of downloading viruses and malicious software.
Distinguishing between genuine antivirus warnings and fake ones is another key protective measure. Train your employees to recognize suspicious antivirus warning messages and report anything questionable immediately. Regularly update your security software to ensure malware can’t infiltrate your system and networks.
Establishing a Cyber Security Plan
Building a robust cybersecurity plan for your business is not an option. It’s a necessity. Start by identifying the critical assets you need to protect and the potential risks to those assets. You should also define every person’s role and responsibilities within your cybersecurity team to ensure swift response during an incident.
Contrary to what some might think, your cybersecurity plan should not be set in stone. Cyber threats evolve quickly, and your plan should keep pace. Aim to review and adjust it at least once a year or whenever significant changes happen in your business or the threat landscape.
Keeping your team aware of online threats is paramount. The rise in malicious emails since COVID-19 is a staggering 600%. Ransomware has also become more aggressive, with average ransom demands in the business sector climbing from $8.4 million in 2021 to $13.2 million in 2022. Therefore, conduct regular training sessions to familiarize your team with common cyber threats and the correct course of action if faced with a potential risk.
How Your Website Can Expose Your Business to Risk
Your website, a virtual interface between your business and customers, can expose your business to cybersecurity risks. Vulnerabilities could range from insecure login credentials to unpatched software and unprotected sensitive data.
A regular security assessment of your website is a sensible step in identifying potential weak points. Such an assessment should involve a thorough evaluation of your website’s code, server configuration, and network infrastructure to spot any areas that cybercriminals could exploit.
The Role of Cyber Liability Insurance in Your Cybersecurity Strategy
Alongside all the other steps you’ve taken to secure your business, cyber liability insurance plays a vital role in your cybersecurity strategy. Cyber liability insurance ensures you are covered for any financial losses incurred due to data breaches and other cyber incidents.
Businesses need cyber liability insurance as it can help recover the financial losses caused by cyber attacks, including costs associated with notifying customers about the data breach, restoring the personal identities of affected customers, recovering compromised data, and repairing damaged computer systems.
Cyber liability insurance is different from data breach insurance. While the latter covers your business in the event of a data breach that exposes sensitive customer information, the former is more comprehensive, covering several other types of cyber threats and their consequences.
Assessing and Addressing Your Cyber Liability
Finally, it is essential for businesses to fully understand their cyber liability. This includes taking a hard look at your industry and company size. Different industries are subject to different types of cyber threats and thus require different coverage. Similarly, a small company might not need the same extensive coverage as a large multinational corporation.
Your existing cyber liability coverage should be reviewed and adjusted periodically to suit your changing needs. Depending on your business model, you may need to increase or reduce coverage or switch to a different provider to better protect your business against the ever-evolving landscape of cyber threats.
Get the Cyber Liability Insurance You Need with JMG Insurance Agency’s Help
Your business is an asset that deserves the utmost protection. As the world becomes more digitized, it’s clear that cybersecurity and cyber liability insurance must be part of your security plan. Furthermore, creating a safe digital environment is an ongoing process that requires adapting to new threats and integrating safety into your company culture.
If you need help figuring out where to start with cyber liability insurance or how to align it with your business needs, JMG Insurance Agency is here to help. Our experts can help you decipher your business’s specific risks and tailor a cyber liability insurance plan that provides you with the proper coverage. Contact us today at 1-844-304-7332 or online or online to get started on digitally securing your business.