Why your business needs
Cyber Liability Insurance
DC the Computer guy
With the growing threat of complex cyber-attacks, the significance of cyber liability insurance for businesses, especially small and medium ones like Clark Computer Services, cannot be overstated. Over the years, I’ve navigated through the complexities of safeguarding our operations and client data against cyber threats, and I’d like to share some insights on why having Cyber Liability Insurance is not just a precaution but a necessity.
WE’RE ALL TARGETS
Cyber-attacks are indiscriminate – they don’t target businesses based on size or industry. Small businesses, non-profits, and educational institutions are all on the radar of cybercriminals. It’s a common misconception that only large corporations are at risk. The reality, however, is starkly different. We’re all potential targets, and the impact of a cyber incident can be profound.
EFFECTS OF A BREACH
The financial ramifications of a data breach are more severe than many realize. The latest figures from IBM’s Cost of a Data Breach Report 2023 highlight an average cost of $4.45 million per incident, a figure that’s been steadily climbing. This staggering cost encompasses not just the immediate expenses of addressing the breach but also the long-term costs associated with recovery, legal fees, and lost business.
Legal complexities following a data breach add another layer of challenges. For small businesses like ours, legal fees can pose a significant financial strain. Cyber Liability Insurance offers a lifeline against this cost, covering legal costs and providing crucial support as businesses struggle to recover.
Operational disruptions are another critical concern. There have been instances where businesses had to halt operations to manage the aftermath of a cyber incident. Such downtime often results in lost revenue and can even jeopardize the survival of a business. Cyber liability insurance plays a critical role here by offering compensation for business interruption losses, helping to mitigate the financial impact during recovery periods.
Moreover, the aftermath of a cyber-attack often requires specialized forensic investigations to determine the full scope of the breach and prevent future incidents. The cost of this forensic support is another aspect covered by cyber liability insurance, ensuring that businesses have access to the expertise needed for a thorough post-incident analysis.
The landscape of cyber threats is constantly evolving, with cybercriminals employing increasingly sophisticated tactics. It’s the responsibility of every smart business owner to be prepared and protect against these threats. Cyber liability insurance is not just about mitigating risks – it’s about ensuring the resilience and continuity of your business in the face of digital threats.
For those considering cyber liability coverage, most insurers you already work with likely provide coverage options, though there are things to keep in mind. For instance, every insurer requires you to fill out an assessment before granting coverage. These forms can be complex and, if not answered correctly, could lead to coverage denial in the event of a breach. And then there is the matter of getting sufficient coverage to meet regulatory requirements, which can lead to fines, license loss, etc. At CLARK, our Cybersecurity Services can help you answer these questions and make recommendations.
I encourage fellow business owners to explore how Cyber Liability Insurance can safeguard your operations and provide peace of mind in this increasingly dangerous digital world.
President And Owner
I left big business to start Clark Computer Services in 2003; not because I had a grand vision, but because I had three young children who needed their Dad around. Knowing I had to replace my salary, I went door-to-door visiting small businesses to introduce myself and ask if they needed IT support. I heard story after story from business owners and office managers about IT companies not returning calls and emails, grumpy technicians showing up late or not at all, and systems being down for days, weeks, and in some cases…months. I realized quickly that there was a clear and pressing need for reliable, honest, and professional IT support completed pleasantly and on time.