Why Your Small Business Needs Cyber insurance

By Elvis Huff on February 15, 2019
6 minute read

Imagine this scenario:  You walk into the office and you’re immediately informed that the computers are “acting crazy,” money has been transferred out of the bank account by one of your employees who got scammed, and all computers have been “hacked.”

What do you do next?

Your first call

Your response will dictate how the rest of this situation unfolds. Do you call your attorney? The police? Your bank? Advanced IT support? Your insurance company?

Generally, the answer to this question is that your first call should be to your attorney and insurance carrier, followed by notifying your and bank and the police (either federal, state or local).

Simple advice

Your attorney and insurance company are an extension of your team and are on your side. Both are going to offer sound, simple advice and walk with you throughout the journey. I recently attended a conference on cyber insurance, and a lot of carriers now have a team of experts in several areas – IT support, IT forensics, investigators and claims agents. All of these teams are at the ready to get you back to running your business.

Insurance companies are there to support you, and the more policies you have with one company the simpler your recovery process becomes – when it’s just you and them, they don’t have to work with another carrier to address a particular area.

Choosing the right policy

Here are some things to look for when choosing a cyber insurance policy:

  • Evaluate the policy with your agent to ensure that it covers more than traditional hacking or computer intrusion. These things still happen, but more often it’s social engineering that ultimately leads to a breach.
  • Consider a social engineering rider on the policy. As mentioned in my previous article, employees are a prime target for hackers because they want to do their jobs. If a hacker convinces an employee to wire money out of the company account to pay a fictitious invoice, that’s social engineering
  • Ask if your cyber policy has training and awareness modules that you can distribute to your employees. This lessens your exposure to cyber risk and keeps your employees more aware of the threats they face – a win-win.
  • Ask if your insurance carrier gives a discount if you do a mock tabletop hacking exercise. This is a good way to cover all of the areas and “what ifs.” You’ll come away learning more about how a disaster unfolds and what you would do in a certain scenario. This is a great way to identify weaknesses.
  • Look at your bond and what all it covers, and ask questions so that you feel comfortable with the policy.

Don’t wait, get cyber insurance today

Go out and buy a cyber insurance policy today.  It’s more affordable than you think. The insurance companies are on your side and will work with you, not against you.

Please visit us in person at any one of our convenient WBT locations, online at www.wilsonbank.com or call us at 615-444-BANK (2265) and talk with someone about your needs. We can put you in touch with the right person to get you the coverage you need and the policy that fits you best*.

Have another thought, tip or suggestion? Leave it in the comments below. I would love to hear from you!

*Insurance products are not FDIC insured, not guaranteed, and may lose value.

Posted by Elvis Huff

Elvis Huff worked as an officer and network administrator for 12 years with the Lebanon Police Department and has also served as an adjunct professor in information systems at Cumberland University. Read More »

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