Cyberattacks can cost small businesses big money. A report by IBM and the Ponemon Institute says the average data breach cost for a small business with fewer than 500 employees is $2.98 million.
There are ways to guard against an attack, including technological safety nets, employee training and insurance policies. But half of respondents to a TPS survey said they didn’t have a cybersecurity policy or an endorsement on their general liability policy and 45% of those say they don’t plan on getting one either. And that’s despite the majority of respondents saying they do have a plan in place for cyber management and security, a major part of getting insured, experts say.
Cost could be a factor. However, consider the premiums are likely a lot less than the potential cost of a breach. Business could be down for days until systems are restored and investigations conclude.
Businesses also may be deterred by the groundwork needed to establish coverage, but most survey respondents had one of the biggest hurdles out of the way, a documented plan for cyber management and security. That’s a critical component to establishing coverage, along with vulnerability testing, employee training and other things that are also common-sense ways to protect against cyberattacks. The more preparation is done beforehand, the less disruptive any attack may be, experts say.
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Fortunately, insurers can offer helping hands to help businesses recover in the event of an attack, including covering the cost of any loss of business, reputation protection and more.
“They’ll smooth-talk everything,” Benfield says, soothing any ruffled feathers and possibly mitigating any future lost business.
One thing businessowners shouldn’t do, Benfield says, is attempt to sweep anything under the rug. Trucking is a relationship business, and pretending a breach never happened is a sure-fire way to torpedo a relationship.
“That’s a very dangerous way to play that,” he says.
And if you’re thinking, “What would a cybercriminal want with me?” Take a look at your client list. The bad guys may not be after your pockets, but may use you as a stepping stone to get to people you do work for, creating a liability that could, ultimately, affect everyone’s bottom line.
Or, as happened earlier this year with CDK, attackers could hit a company businesses rely on, shutting doors down the line. That attack lost dealerships more than $1 billion. The right policy can protect companies, reimbursing for any lost business and helping set up safety nets to keep things rolling.
Cyberattacks aren’t likely to get less expensive or less common. But businesses can, and should, consider protecting themselves in any way they can.
