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Why Cyber Insurance Takes Your Business’ Security to the Next Level

Posted by  on 2021-05-03  10:00:28 AM
Why Cyber Insurance Takes Your Business' Security to the Next Level

There’s lots to consider when you are looking to keep your business safe. First of mind, of course, is physical security: does your business need cameras, a security alarm system, and a security guard?

In these modern times, you might next think of your business’ cyber security. The fact of the matter is that cyber insurance is what is needed to truly maintain your business’ safety, and today we will discuss what it is and how it takes your business’ security to the next level.

Cyber Attacks & Canadian Businesses

Cyber attacks affect 21% of Canadian businesses, putting you and your customers at risk. Cyber attacks take many forms but they can be viruses, hackers or disgruntled ex-associates that still have access to your system. When sensitive customer information is leaked it usually results in a 10% drop in revenue. On top of that, you could be sued for mishandling customer information, resulting in even more damage to your business.

We recommend only sharing your information with sources that you trust, only opening emails from familiar senders and backing up your information externally, through remote servers or external hard drives. But in the event that your information is breached and/or lost, insurance services will help you get back on your feet.

How Cyber Insurance Helps

Here are some ways that having cyber insurance coverage can help support your business:

1. Loss in Revenue

It’s important to recoup your losses as much as possible, which includes continuing your relationship with your customers. Whether that means you personally call or email them, or hire a PR firm, contacting your customers will take time and can result in a loss of business.

As Starbucks founder Howard Schultz said, “The currency of leadership is transparency. You’ve got to be truthful”; it’s important to be honest in the face of adversity to save your reputation.

Cyber insurance gives you the opportunity to clear your mind and create a course of action – one that will foster opportunities when the dust settles.

2. Get Your Systems Back in Order

You have to get your systems back in functioning order. What’s more, you need to secure your system and figure out how this all happened.

The cost of investigation to pinpoint your weak points can be expensive but it is necessary to determine where the weaknesses lie and what operational changes need to happen in your business.

Then, depending on the weak point, you’ll need to secure your system to prevent any more cyber attacks from occurring. This is usually a costly implementation but a necessary prevention strategy.

Now getting your business back in order. If you’ve lost your customer, employee or lead information, you’ll have to update everything all over again. This includes your Point of Sale (POS), Customer Relationship Manager (CRM) and other access points. If your computers are completely corrupted, cyber insurance will cover the cost of repair or replacement.

3. Legal Fees

If you deal with sensitive client information, that information could have potentially been exposed – which could result in client backlash. Many professional liability insurances do not cover the digital space, and you’re going to need cyber insurance to cover any potential legal fees.

This insurance also covers any auxiliary damage to client or employee systems. Often if your clients or employees use personal passwords or computers to access your systems, the breach or virus can be transferred to their device.

To be honest, we wish that we didn’t have to talk about hacks and breaches and just focus on your other business and family needs. But unfortunately, we can’t ignore the reality of the virtual arena.

The effects are far-reaching, impacting everyone within your organization, from your customers to your highest executives. We know this can create a stressful environment which is why our job is to mitigate the strain as much as possible.

Contact Goodison Insurance Today

For more information about how we can help with your specific cyber insurance needs, call Goodison Insurance at 905-451-5316 or contact us here.

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