Small business owners typically don’t think they’ll be the victim of a cyberattack and don’t protect themselves with insurance to cover the contingency. It’s a fallacy that only large or international corporations fall victim to cyberattacks. A full 55 percent of all cyberattacks are aimed at small businesses, primarily because they don’t take appropriate precautions.
Any small business that has personally identifiable customer information or financial data can be held liable if that information is hacked. Businesses face costly fines and open themselves to lawsuits, even if they have a trusted an IT security company to protect them.
Business owners are required to ensure that the companies and organizations with which they conduct business are also adhering to the highest security standards. Businesses are required to notify affected individuals as soon as the incursion is known. It seriously damages a business reputation that can take years to repair – if the business manages to survive the monetary costs.
Types of Attacks
There are dozens of ways that the unscrupulous attempt to gain access to data. Ransomware holds data and computers hostage until a payment is made to the hackers. Attacks also come in the form of emails and can be the most financially damaging for businesses. Phishing attacks try to trick a victim into providing critical information such as passwords, credentials, or credit card numbers.
Businesses can also be open to distributed-denial-of-service (DDoS) attacks that flood a server with traffic to disrupt or crash servers. SQL injections are used to exploit HTML forms and websites. As AI technology becomes more prevalent, hackers are using sophisticated artificial intelligence systems that encompass multiple types of attacks.
An increasingly effective form of cyberattack is being made via the Internet of Things (IoT). The risk increases as more “smart” devices enter the workplace. It includes ordinary items such as TVs and cameras, machines, robots, smart locks, mobile card readers, along with alarm systems and even climate monitoring systems.
The Danger is Real
No business or organization is immune to a cyberattack, making cyber liability insurance essential. Attacks are routinely launched on schools, hospitals, museums, governmental entities and businesses of all types. Every small business must be prepared.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487