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The Costs of Poor Cybersecurity

Why it’s vital to improve your business’s cybersecurity.

Today, cyberattack and data breach are some of the most serious risks that businesses face.  Because the costs associated with these risks are considerable, it’s important to take preventative measures.  Here’s what you can do to reduce your business’s risk for cyberattack and data breach.

The Cost of Cyberattack

It’s important for business owners to understand just how badly a cyberattack or a data breach will affect their company and their customers.  For starters, your business would be responsible for covering all the costs associated with the breach.  This includes the following:

  • Cost of notifying clients
  • Cost of restoring identities of affected parties
  • Cost of recovering compromised data
  • Cost of damaged computer systems
  • Cost of ongoing credit monitoring of affected parties
  • Cost of lawsuits

In addition to these monetary losses, businesses who are hit with a data breach also face reputational harm and the loss of client trust.  This can make it difficult for a business to retain customers, attract new clients, secure future contracts, and so on.  In some cases, the damage caused by a data breach is so severe that the business never recovers and is forced to close its doors.

Preventing Cyber Attacks

There are many things that your company can do to mitigate its risk for a cyberattack.  For instance, here are some of the steps that you can take.

  • Limit Access to Sensitive Data
    • One of the best ways to reduce your risk of a data breach is by limiting the number of employees who can access sensitive customer and business information. When you reduce the number of employees with security clearance, you reduce your risk for a leak.  Additionally, if a leak does take place, then you have a smaller pool of suspects to investigate.
  • Train Your Employees
    • The employees that are allowed to access private information should undergo comprehensive cybersecurity training, so they understand the risks of a major data breach. During your staff training, you should explain your company’s login requirements, establish appropriate Internet use guidelines, and detail the penalties for violating company security policies.  You should also establish rules for handling, protecting, and inputting sensitive customer data to limit exposure.
  • Secure Your Internet Connection
    • A firewall is a set of programs that prevent outsiders from accessing information on a private network. You should make sure that your operating system’s firewall is enabled or, if your system is not currently equipped with firewall capabilities, then install firewall software.  If your employees are allowed to work from home, then make sure that their home systems are protected by a firewall to ensure that they do not get hacked.

This is how you can protect against the losses associated with cyber liability risks.  Remember, another way to protect your business is by securing the right commercial coverage.  For assistance with all your business insurance needs, contact the team at East End Insurance Agency today.

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