Cyber Insurance: How It Can Facilitate Small Business to Thrive

Gone are the days when starting a business was considered to be difficult and where a physical store was essential. Now, things have changed after the inception of the internet. It has provided a great launching pad for small firms to start their business at the minimum cost. Today, businesses are more efficient and fast. They are now able to provide better quality work and stay connected with their client all over the world.

The internet act as a medium used to share an enormous amount of data for the companies and to do better in the industry. However, it also makes businesses vulnerable to security risks like data breaches. Well, this is something that no companies could afford to take. The increase in the cyber attacks has left companies in concern.

The use of cyber insurance in businesses

There is no denying the fact that the realm of the internet is an abode of information. But, at the same time, it is also the playing ground for the cybercriminals who keep crawling online for an opportunity. So, when there is so much at stake, it is necessary for businesses to use cyber insurance to ensure that it can help companies protect from heavy data loss.

The annual fees of cyber insurance can cost up to ÂŁ7,500 annually. So, if you are a start-up and need funds to make the purchase, then you can apply for small business loans without guarantor. Here, in this blog, we will be discussing the concept of cyber insurance in details. So, let us get started.

What exactly is Cyber Insurance?

 Technology has totally transformed our life. Today, the majority of our daily activities, both personal and professional are carried out on the online platform.  So, it becomes necessary for businesses to take effective steps to counter-attack the cyber threats.

With a large information and money being transferred on the internet every day, cybercrime should be given prior attention. Most of the cybercriminals target the small firms who don’t have enough security features to protect their businesses.

What types of businesses should use Cyber Insurance?

Well, there is no specific categorization of the business that should use cyber insurance. Any business that uses the online platform for their service or any other tasks is liable to use the technology. Here are the major indications that suggest you go for cyber insurance if your business:

  • Uses computer systems and online software
  • Have an online presence like website, and on social media platforms
  • Keep confidential data of the customers
  • Has payment history of the clients

 

Types of cyberattacks that are a big threat for the business

Cyber attack refers to all the online practices where the attackers target the victim’s system to corrupt it via sending malicious programs. It involves various types of security breaches including:

  • Malware: It refers to the software that is purposely designed to cause harm to the users’ computers or any other devices.  Viruses, Trojans, Worms are the most common forms of malware.

 

  • Social Engineering: In this category of cyber threats that involve the misuse of social interaction. With the help of this, the attackers get the access to the victim’s information and data.

 

  • Denial Of Service (DOS) attack: This is the type of cyber attack where the attacker hacks the network resources to make it unavailable for the particular set of users for a given time.

 

Where can you get cyber insurance?

Just like an individual needs health insurance to ensure a financial backup, entrepreneurs also need to secure their business with the help of cyber insurance. But, at the same time, businesses should take all the steps necessary to mount a security defence.

The first step for this will be getting useful software that can protect all the system being used in your business from cyberattacks.  There are popular software products available in the market, such as Quick heal, McAfee, and Avast that offers enhanced cybersecurity.

By far, you must have understood everything about Cyber insurance and why it is important for your business.