Should your business invest in cybersecurity insurance?

    All companies are potential victims of cyberattacks, and buying cybersecurity insurance is one way many local small- and mid-sized businesses are trying to mitigate that risk.

    Because cyberattacks expose businesses to exorbitant costs, local employers are increasingly looking beyond traditional safety nets to avoid financial ruin—especially in the time of COVID-19, as hackers take advantage of the fact that most workplaces continue to operate remotely.

    Small businesses are easy targets. About 75% of all data breaches happen to businesses with less than 200 employees. What’s more, about 60% of all businesses that get hacked fail within six months. 

    Cyber insurance typically falls into two categories: first-party insurance, which provides compensation for damages that directly affect a business, such as the cost of data recovery, and third-party insurance, which covers damages to other people or business partners of the targeted business, such as when their data is stolen.

    If your business processes payments online, uses cloud systems to store company information or stores customer data in a computer system, you should probably invest in cyber insurance. Read the full feature from the latest edition of Business Report for more about how to obtain this insurance, and what it covers.