Managed service providers like KLH often must educate businesses on the importance of protecting their companies from potential IT attacks. And yet, investing in cyber insurance or other security measures typically comes at the bottom of a long list of priorities for many businesses.
You owe it to your clients and company (not to mention all the hard work it took to get where you are) to shore up IT vulnerabilities. Here’s why:
Common Misconceptions About Cybersecurity
“I have a firewall; I’m protected and don’t need cyber insurance.”
“My business isn’t at risk because I don’t have a website.”
“I’m not a large IT organization with servers and software that are vulnerable, so why should I invest in an unnecessary expense?”
We’ve heard sentiments like these time and time again from our clients. The fact is: if you use email, you’re at risk. If you use social media for your brand, you’re at risk. If you hold video calls with clients, you’re at risk. Even texting puts you at risk.
No company is immune from data breaches, viruses and hacks.
Another common misconception is that a general liability business insurance policy will cover any IT issue you might experience. Not true. Business liability covers many things, but IT breaches aren’t one of them. Assuming you’re covered could cost you thousands should you experience a breach.
So why do so many businesses believe these misconceptions? Why do they decide against taking preventative action? More than likely, they haven’t had first-hand experience with a breach, nor do they know anyone in their industry that has. They may think others are at risk; not them.
This thinking is dangerous because it puts your business, your customers’ data and everything you’ve worked so hard to achieve at risk.
Risk Exists For Everyone
Here’s a sobering statistic: 60% of small businesses will go out of business if they don’t have cybersecurity insurance coverage and are attacked. Many SMBs don’t realize how badly their finances and reputation will suffer in the case of a data breach, and when they do, it’s too late.
We cannot stress this enough: you need to take cybersecurity seriously. Cyber issues aren’t going away, and they’re only getting more intimidating as technologies develop.
What You Need To Do
Just like with auto or homeowner’s insurance, buying a cybersecurity insurance policy isn’t sexy or an expense you want to have to invest in. And, hopefully, you will never need to file a claim. But, it’s essential you fit it into your annual budget.
Talk to your insurance agent or broker about a cybersecurity insurance policy. You may have no idea what your IT risk is, but there are tools that can help you identify what your exposures might be.
Talk to your managed service provider as well. Here are 3 things your MSP can do to help protect your company and IT systems.
1. Cover the basics
Your company should have a firewall as well as antivirus protection and zero-day threat protection.
2. Be a strategic security partner
Your provider can help you develop strategies to ensure any remote access tools your staff uses when offsite are secured. That means computers, thumb drives—anything used to access your company’s IT systems offsite. It includes 2-factor authentication, which can also enhance security for remote devices.
3. Backup, backup, backup
Finally, your MSP should help you set up regular backups. If you are ever the victim of ransomware, it’s imperative that you can recover your data quickly.
Working with your provider can help even after you get breached and decide to invest in cybersecurity insurance because underwriters want to know what you’ve done to prevent it from happening again. Showing that you’ve taken measures to shore up your IT can impact what you pay for cyber insurance.
Cybersecurity is often a matter of planning for the worst and hoping for the best. If you take the time to identify your exposures and protect against them, you’ll be prepared for any situation.