Why You Should Have Cybersecurity Insurance

by John Burke

1 min read

Small businesses often have a lot of details about their clients. Depending on your business, that information may include names, addresses, credit card numbers, bank information, medical records, or other sensitive details. If your business is a victim of hacking, any of this information – as well as your information and your employees’ personal details – may be stolen. According to one survey, anywhere from 36 to 56% of businesses in Canada become the victims of cyberattacks every year. To protect your clients’ data, you should use a combination of firewalls and data backup software. Additionally, internal programs should have two-step authentication or other password security measures in place. If you use an app that shares sensitive information with other users over the internet, you should make sure the information is encrypted. Educate your employees on security issues, such as not using public Wi-Fi to transmit private information. However, even the best protection can fail at times. To further protect yourself and your business, you may want to look into cyberinsurance. Cybersecurity insurance covers the direct costs of dealing with an attack, such as boosting IT security or paying regulatory fines. However, there are also policies that cover you from a liability standpoint. If clients take you to court over a breach of their information, these policies help cover your legal costs.

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