New stories of cyber attacks and data breaches have become a regular occurrence. While many nationally run stories focus on incidents involving major companies that have vast amounts of data, big companies are far from the only businesses that need to insure themselves against data breaches. Here are five potential incidents that show why small and medium businesses in Northampton, Massachusetts should consider getting a cyber liability insurance policy.
Cyber Insurance Might Cover These 5 Incidents That a Northampton, MA Business Could Face
1. Losing Sensitive Data During a Traditional Hacking Incident
Big companies may be promising targets for hackers because of how much data these companies have, but hackers don’t limit their attempts to only Fortune 500 companies. Small businesses can also be the victim of an active attempt to breach their security and steal data. In fact, some hackers may specifically target small businesses because they have fewer resources to invest in cyber security. Any business in Northampton, MA that has a computer connected to the internet may be the target of a successful hacking attempt.
2. Being Extorted in a Ransomware Attack
Sometimes hackers don’t steal data but instead lock it up. In a ransomware attack, a criminal blocks a business from accessing data on its computers or servers until the business pays a ransom or extortion fee. Any Massachusetts business that’s susceptible to a traditional hacking attempt is also at risk of suffering a ransomware attack.
3. Having Information Compromised Through Social Engineering
Social engineering attempts usually try to trick people into sharing sensitive information, such as personal details, login information, or business data. Phishing, in which a criminal deceptively tricks a targeted person into giving up information, is a common social engineering strategy, but it’s not the only one.
Social engineering attempts often target lots of people on a list indiscriminately, so small and medium businesses are at risk along with larger corporations. If an employee falls victim to an attempt, the information they provide -- even if it’s only personal information about them -- might be used to access a business’ data or systems.
If these digital threats weren’t enough reason to invest in cyber insurance, there are also a couple of offline risks that most cyber liability insurance policies provide at least some coverage for.
4. Having Devices Stolen in a Traditional Robbery
When a burglar breaks into a business’ property, computers and other electronics are often among the first items they’ll target. After all, computers are relatively small, and they’re often valuable.
A cyber liability insurance policy usually won’t cover the value of hardware that’s stolen, but a policy frequently will offer some coverage for data that was stored on the stolen devices. Even if the thief was only after the hardware and doesn’t use any data stored on the computers they steal, recovering that information can take time and money. Cyber liability insurance might help pay for the recovery.
5. Losing Devices That Are Left in Public Settings
Similarly, cyber liability insurance often also provides coverage for data on a device that’s innocently lost by an employee. Many Massachusetts business’ employees do some of their work in public settings, like coffee shops, restaurants, and hotels. If they leave a device behind and can’t retrieve it, a cyber policy might help pay to recover the lost data.
Check Your Northampton, MA Business’ Cyber Insurance
Many cyber policies would cover these incidents, but some might not afford all of the protection that a business needs. If you aren’t sure whether your Northampton, MA business has cyber insurance that would cover these five scenarios (or if you know your business doesn’t have coverage), contact an independent insurance agent in town. Most independent agents that help businesses with their commercial insurance needs are familiar with cyber liability insurance and can help assess your business’ coverage needs.