Unfortunately, small businesses are not safe from hackers. When you see a report about hackers attacking a company, it’s usually a large, national firm that makes headlines. Sony is a well-known example. However, one in five small businesses falls victim to cyber attacks. What’s even worse is that 60% of these companies go out of business in six months. Typically, smaller companies are more susceptible because they don’t have precautions, funding, or personnel to enact strict security protocols and regulations. For this reason, it’s crucial to have cyber liability insurance. Here are three essential reasons why small businesses should have it.
The Reputation Of Your Small Business Matters
A data breach can damage a company’s reputation, and it can be hard to recover. Large retailers often bounce back from data breaches and crises of all sorts, but smaller companies can have a harder time trying to win customers’ trust.
If Customer Financial Data Becomes Compromised, You May Have to Pay
During a breach, customers’ financial data can be in jeopardy. With that in mind, you may have to pay hefty fines coming from credit card and debit companies. If your company is not compliant with requirements from the PCI Security Standards Council, this is especially true. The PCI Security Standards Council is a universal forum that implements account data protection measures.
Productivity Slows When A Business is Not in Its Best Shape
When small businesses (or any business) goes through a crisis, it’s not uncommon for customers to call in with questions about the crisis. Instead of the calls being sales-driven, you and your employees may spend a lot of time reassuring your customers that your business is still reputable, and you have everything under control. If you don’t have a detailed breach plan setup, it’s even harder to focus on any other aspects of business operations besides recovering from the data breach.
How to Prepare for a Data Breach
- Have a detailed data breach plan and alert stakeholders right away
- Have personnel on staff that knows how to handle cybersecurity threats
- Establish data encryption so that you can keep sensitive information safe
- Train employees and keep them well-aware about hacking trends
- Contact us if you don’t have cyber liability insurance so that company assets are covered if a data breach should happen
Partner with Malden Solutions Today
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.