As we explained in a previous post, cyber-attackers are targeting businesses of all sizes, which means small businesses are not immune to these breaches. Even though small business owners tend to believe they don’t have a valuable enough database to hack, this is a common misconception. Simple practices such as storing customer data and payment information are alluring to hackers. Therefore, in addition to protecting your clients’ businesses and their data with a comprehensive Cyber Liability Insurance program, share the following advice with them.
National Small Business Association explains that over 40% of small businesses have faced a hack in the past. Therefore, experts recommend being realistic about the potential exposure to these crimes. What’s more, FDIC does not insure business accounts, so even if they are hacked, they would not be immediately recovered. Another important thing to note is that general liability insurance does not extend coverage to cyber-crime, making cyber liability insurance even more critical.
Now that the preventative measures have been covered, it’s time to take action. Consider the following advice:
- Use encryption and password protection software on all electronics.
- Constantly change passwords and require authorization to use databases that store sensitive information. Create strong passwords with lower and uppercase letters, symbols, and numbers.
- Install firewalls on routers and servers.
- Educate staff and third parties about how to identify one, who is responsible for managing it, and create a response plan to recover as quickly as possible. Bear in mind that there are laws pertaining to who needs to be notified and involved during a breach, so your clients should get familiar with their state and federal regulations.
- Invest in a backup system to access confidential information if a breach is suffered.
About Domenick & Associates
At Domenick & Associates, we specialize in protecting small to mid-sized firms from the cyber threats. Our coverage is custom tailored with your clients in mind to guarantee them the best protection. For more information about our products, contact us today at (215) 629-5701.