Does My Business Need Cyber Risk Insurance? | Archway Insurance

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Does My Business Need Cyber Risk Insurance?

Posted by  On April 26, 2021
Does my business need cyber risk insurance?

You’ve worked hard to build your business. You oversee every single part of it – and you know that one of the most important parts of being a business owner is risk management.

Unless you have absolutely no online interactions at all, your business could be at risk from a cyber attack. Since most businesses have an online presence these days, it’s very hard to avoid having at least some exposure to potential cybercrimes.

This kind of risk is the reason a fairly new kind of insurance is now being offered – cyber risk insurance. In this article, we’ll tell you:

  1. What cyber risk insurance is.
  2. Why your business needs cyber risk insurance.
  3. How you and your employees can help protect yourself from a cyber attack.

We’ll also tell you how Archway Insurance is here for all your cyber risk insurance needs.

What is cyber risk insurance?

You may have heard of “cyber risks” and “cyber attacks” but you aren’t exactly clear on what they are. Or, you assume that only large businesses and governments are at risk from a cyber attack.

The truth is, anyone who has an online presence or connects to the Internet at all is at risk of a cyberattack. The purpose of cyber risk insurance is to help you cover costs associated with any of the following:

  1. Data breaches
  2. Ransomware attacks
  3. Hacking
  4. Compliance failure

Why Your Business Needs Cyber Risk Insurance

We’ve talked about some of the top costs covered by cyber risk insurance. Now we’ll explain how these types of attacks could impact your business:

  • If you have any kind of sensitive data such as credit card numbers or home addresses for your customers, clients, suppliers, or vendors and that information is compromised by a data breach, you could be sued if you were considered negligent in protecting that data. Even if you left your data unintentionally vulnerable, you are still considered responsible for letting the data breach happen. You could get hit with the high costs of claims and legal proceedings.
  • A ransomware attack happens when malicious software infects your computer. Whoever controls that software demands money – or they will continue their denial of service attack. They may even threaten to disclose private personal information from your computers. While ransomware attacks are much more serious if they impact places like hospitals, your company could suffer if your employees cannot work for hours or even days.
  • Hacking. This is a term most people have heard of but they’re not always clear on what it means. A hacker is someone who identifies weaknesses either in your computer system or your network and finds a way into them to gain access to the data they contain. Once a hacker is into your system they can do anything from committing fraud to stealing corporate and personal data. This can cost your business a lot of money.
  • Governments are becoming more proactive about enabling acts to protect people’s data. Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) outlines what happens if companies do not comply with its mandates. For example, you could be fined up to $100,000 per violation.

As you can see, even if just one of these events happens to your company, it can be very costly. This is why it’s so important to get cyber risk insurance. The cost of cyber risk insurance is quite low compared to the cost of a hack or a data breach. While cyber risk insurance cannot protect your company from being attacked in the first place, it can give you peace of mind that you’ll be financially protected if an attack does occur.

How can I protect myself from a cyber risk attack?

While cyber risk insurance is there for you if anything happens, it’s even better if you can protect yourself from a cyber risk attack in the first place. Keep these tips in mind and share them with your employees:

  1. Never click on a link in an email if you have concerns about it. If you hover your mouse over the link, you can see where the link actually goes – which may not be the same location as indicated by the text for the link.
  2. Report all suspicious emails to IT and let your team know about them.
  3. Always use a secure network if you need to access company information offsite – never use a public WiFi signal.
  4. Change your passwords on a regular basis.

In addition, if your employees ever take laptops offsite, make sure they keep them in a secure location and encrypt all critical data on their laptops.

Being proactive in having cyber risk insurance as well as teaching your employees preventative measures can go a long way to giving you peace of mind.

How can Archway Insurance help me with cyber risk insurance?

We’re here to help protect you from the fallout to your business that can occur from a cyber-attack whether that’s financial, reputational, or both. Being in the insurance business, we understand that no matter how cautious you or your employees are, there’s always a risk that you could be hit by a cyber attack.

We can talk to you about the range of cyber risk insurance coverage and how your company can benefit from them. As with any type of insurance we offer, we’ll walk you through everything you need to know, from costs to explaining terminology. We want to make sure you’re clear on what cyber risk insurance is and how it can benefit you.

Now You Know Why Your Business Need Cyber Risk Insurance

You’ve learned all of the following today:

  1. The purpose of cyber risk insurance.
  2. Why your business needs to have cyber risk insurance.
  3. The steps you and your employees can take to help protect your company from a cyber attack.

To learn more about cyber risk insurance, call Archway Insurance at 1-833-536-0529 or contact us here for all your insurance needs in New Brunswick, Nova Scotia and Prince Edward Island.

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