In the world of business, there is one risk that is greater than any other: cyber risk. Despite being a relatively new type of threat, the potential damage caused by cyberattacks has been identified as the largest business risk that exists. This means that, if you are a business owner, the highest probability of suffering severe damage is not from a fire, theft, earthquake or personal injury, but from a cyberattack.
Most businesses have insurance for various types of risks, such as liability, fire, and theft. However, very few have insurance to protect against cyberattacks. This is a risk that can sneak up on you, and you won’t know you have it until it happens. Unlike a potential fire, which you can see and take precautions to avoid, cyber risks are more insidious and can cause greater damage.
Imagine being out of business for a week, with all of your data erased, including your customer files. This type of damage would be far worse than someone smashing your front window. It’s important to be aware of this risk and take action to mitigate it. To do this, we recommend talking to your current insurance agent, or a new one, to see what it would take to get coverage for cyberattacks.
More than just giving you coverage, the underwriting process that comes with cyber insurance can help you identify potential loopholes in your business that could be exploited by hackers. Your agent will conduct an audit of your business and your technical specifications, such as your website, routers, modems, and phones. They will help you prevent cyberattacks from happening in the first place. Even if you have coverage, an attack will still be the worst day in your business, so it’s essential to avoid it if possible.
In conclusion, cyber risk is the biggest threat to businesses in 2023. Make sure to assess your business’s vulnerability to cyberattacks and consider getting insurance coverage. Don’t wait until it’s too late!