A West Virginia cybersecurity insurance policy is an often overlooked but crucial risk management strategy for all businesses, but it is particularly so for small businesses. Larger businesses might have an easier time recovering from the financial and reputational damages of a data breach or cyber attack, while small businesses could be crippled by it. Don’t rest easy thinking it’s unlikely to happen either. Because hackers assume small businesses have no or fewer security measures in place, they often target small businesses and 71% of cyber attacks are perpetrated on small businesses. Cybersecurity for small businesses in WV should be a priority.
West Virginia Cybersecurity Insurance: A Necessary Part of a Small Business’s Overall Security Plan
West Virginia cybersecurity insurance goes a long way to prevent your small business from suffering serious consequences or even failure in the event of a data breach. As part of an overall risk management plan, WV cybersecurity insurance can provide peace of mind that your business would be protected from the potential fallout of a cyberattack.
Everything You Need to Know About West Virginia Cybersecurity Insurance
Cybersecurity insurance, also called cyber liability insurance, protects businesses from direct and indirect costs associated with cyber threats. Some of the potential costs include the following:
- loss of data;
- customer notifications;
- sales opportunities missed because of the attack such as downtime, turned-off customers, etc.;
- stolen assets;
- ransom amounts;
- legal defense; and
- the costs of publicity efforts to repair reputational damage.
Cybersecurity insurance is written for either first party or third party coverage. First party coverage protects the owner of the damaged property, here, the small business that has suffered a cyber attack, from damages it could sustain from a cyberattack, such as lost sales opportunities or stolen data. Third party coverage protects a vendor that provided a service to prevent the data breach in the first place. Consult your insurance agent to determine whether you need only first party coverage, third party coverage, or both.
As with any insurance policy, it is important to read the “fine print” in the policies to see what is covered and what isn’t. For instance, most companies don’t offer reputational coverage as the damage is too hard to quantify.
Cybersecurity insurance can be a little expensive because it covers a high risk situation. The fact that the situation is so likely also means businesses need it more. Ask your insurance agent whether there are ways to reduce the premiums, such as establishing and following sound data security protocols. If a business proves its own security protocols are fit, the insurance company may offer a lower premium.
When acquiring West Virginia cybersecurity insurance, also consider your individual business and its unique needs. The data your business needs to protect, your business’s security risks, and the damage a cyber attack could cause are factors that help determine the insurance policy that is most beneficial. You should also prioritize and quantify the risks and damages when choosing a policy to ensure the cost is a sound investment. An experienced cybersecurity insurance broker can help you find the best policy for your business.
Other Ways Small Businesses Can Protect Themselves from Cyber Threats: Data Security Solutions
Another way your small business can protect itself from cyber threats is to fortify your security practices to prevent a successful cyber attack. Common measures include using software and hardware to prevent a data breach from a cyber attack, appropriate password management, and regular training of personnel on security risks and protocols.
A business continuity plan should also be part of your business’s IT security plan as it will provide tools to keep your business running smoothly in the event of a successful cyber attack.
Cyber attacks are a real threat to businesses of all sizes, including small businesses in West Virginia. To provide the best possible protection for your small business, pair West Virginia cybersecurity insurance with sound IT security solutions from ComTech Consulting, LLC, where your digital security is our top priority. For more information on how ComTech’s IT security services can help you, email us at Sales@ComTechSBS.com or call (304) 720-8491.