Elizabeth Sullivan of E.G. Bowman Company, an independent insurance brokerage in New York City, was recently interviewed about small business cyber risk.1 The article is an excellent discussion of the fact that small businesses are now realizing they indeed are in need of cyber insurance. It also discusses why they need protection and how insurance will help. “A data breach can damage a small business far more than a big business because there are fewer resources and employees to handle the fallout,” says Sullivan. “It can put you out of business.”
Small businesses often think they are not at risk and therefore decline cyber insurance. This is because they do not fully appreciate the risks and how insurance will help them address that risk. They are now beginning to realize that this risk does indeed pertain to them.
If you are a senior executive of a small business, you should talk to your insurance advisor about cyber breach:
- Legal defence
- Handling customer calls
- Meeting regulatory compliance issues
- Social media liability
- Data recovery
- Crisis management
- System monitoring
- Hard copy files, etc.
Cyber is now clearly your number one business risk. Understand the problem in greater detail, and implement a risk management program appropriate for your size and type of business.
Small businesses are realizing they are exposed to cyber risks that could cause serious harm. Therefore they are looking for solutions like cyber protection from their insurance advisers. Every small business executive should be reviewing this problem with their commercial insurance adviser before a cyber incident becomes a breach headache, not after.