Importance of Cyber Insurance Amid COVID-19 Pandemic

Importance of Cyber Insurance Amid COVID-19 Pandemic

Less than half of companies in the US currently carry cyber insurance coverage. As Covid-19 continues to disrupt normal industry operations, thousands of companies across the country are pivoting to a new business model to stay in business, often with a heavy reliance on technology.  

Doing so is also creating a host of new cybersecurity risks for owner/operators.

March alone saw a 600 percent increase in email phishing scams, whereby criminals send employees official-looking emails attempting to obtain account passwords, sensitive data or access to internal systems.  

This pandemic is making it even more clear that a company using any kind of technology platform must protect its customers and its business with a robust cybersecurity program and protect its own financial and legal interests with a cyber insurance policy. 

With Security America, alarm companies can purchase a cyber insurance policy for as little as $304 per year, providing major protections and digital expert assistance for about $25 per month. The average cost of a cyber attack for small business is $200,000. Is that a gamble worth taking? Smaller businesses are more attractive to hackers because they generally have not implemented security measures. 

What makes a good cyber insurance policy truly worth the investment is the response that’s provided after a claim is filed. What we sell at Security America is not just to “tick the box.” You are provided with a full team of dedicated professionals from both the insurance provider and a digital security firm who root out hackers and breaches and help develop more secure internal processes to protect against future attacks. 

Digital breaches can have severe effects on a business, ranging from loss of customer trust to prolonged law enforcement investigations to customer lawsuits. In an already challenging business environment, owners don’t have room for secondary interruptions that could further hamper sales or reputation.  

Ransomware is another top concern, which occurs when a criminal gains access to a business’ computer network, then locks the owners out of their own systems and demands a ransom payment to give back access.  

Both ransomware and phishing attacks rely on human error and weaknesses in cybersecurity protocols to gain system access. As more sales are being transacted online, digital communications are increasing, consolidating more data and requiring more employees to have access, the opportunities for digital breaches grow. 

At Security America, we provide financial and legal protection from cyber threats such as data theft or ransomware. If a cyberattack occurs, properly insured companies may receive financial compensation, but even more importantly can be given access to a professional digital security firm that provides services such as a comprehensive risk assessment, security awareness training and assistance in dealing with law enforcement.  

As the trends toward digital payments and data collection continue to accelerate, cybersecurity and cyber insurance are quickly becoming some of the most important factors in long-term operational success.  

Call Rhett Butler or Crystal Jacobs at 866-315-3838 for more information on the Security America Insurance Program and let us help you make sure you’re protected when it comes to your digital business operations. ESA members save 20% on all Security America policies.