Being a business owner in the digital world can bring incredible growth opportunity without a significant increase in overhead costs. Unfortunately, vast opportunity brings the potential for excruciating losses, such as cyber hacks and theft of proprietary information. Cybercrimes are becoming one of the leading causes of financial loss on the planet, estimated to cost $6 trillion by 2021, which would then make them more profitable than all major illegal drugs traded across the globe combined.
According to Verizon’s 2019 Data Breach Investigations Report:
- 52% of data breaches featured hacking
- 71% were financially motivated
- 56% took months for the affected business to discover the breach
These incidents can result in proprietary information disclosure, stolen credentials, stolen financial and personal information, installed backdoors and information deletion. Some criminals even encrypt business information until the owner pays a ransom.
Are you covered?
Your business does not need to be within the technology industry to be at risk for a cyberattack, unless you still do everything on paper, which is very rare these days. If your company conducts business around the world, or if you have online sales or utilize a digital backup system, it is likely in your best interest to cover your assets that are kept in a digital format to prepare for the worst-case scenario. According to Verizon’s report, 43% of the breaches involved small businesses, and sometimes the losses were significant enough to shut down the business completely.
Is your claim valid?
It is important to understand your business insurance to ensure that if a cyberattack occurs you know exactly what to do to file a claim and in what timeframe. Some policies focus on identity theft and cover legal fees, but each is unique and may have various exclusions which you should be aware of.
If you have issues with your insurance company accepting your claim, speaking with a qualified business lawyer may help you put together a solid case to improve your chances of gaining coverage for your losses. Proof is key, as sometimes hackers do their work in a way that is as unnoticeable as possible.