Data is big business in the US and around the world. It is sold by both legitimate firms and rogue individuals looking to make a fortune. Unfortunately, this means that businesses can often find that their data is a prime target for data thieves.

The cost for small and large businesses can be very high. For every record stolen, the cost can be as much as $113. With the average breach in the USA is costing $1.5 million based on the number of records stolen

Protecting your data

According to experts, about 50% of small businesses will be a targeted by cybercriminals. This is because small businesses  often don’t have the security setups of larger companies. 

However, large brands aren’t immune to data thefts either. A prime example would be the Equifax data breach which affected 143 million people – more than 40 percent of the population of the United States.

In the modern world, you need to protect your data if you want to mitigate the risk. There are several ways that this should be done. This includes:

• Keeping all software updated (this is a common method for criminals to gain access to systems);
• Protect passwords (ensure staff don’t share passwords and reset passwords regularly);
• Encrypt data while being stored and sent (so it can’t be read by anyone);
• Backup all data (to recover data should it be corrupted); and
• Only keep data that you need, regularly removing data that is obsolete.

How cyber insurance can help data breaches

Cyber insurance is important when it comes to protecting your business from the financial repercussions of a data breach. If you have a data breach, then you can rely on insurance protection to cover your expenses, compensation claims, and PR to manage your business reputation.

This protection can be vital for your business as the cost of repairing the damage from a data breach can often put your company out of business.

The level of insurance needed will vary greatly depending upon your size and the activities. If you are more active online and store records via your website, insurance premiums will often be higher.

Making sure insurance contains the right level of cover

When it comes to insurance, you have the choice of either using an agent or finding the right policy yourself. Agents act as middlemen between insurance companies and customers and their knowledge and experience can be invaluable in getting the right policy. 

When speaking to your insurance agent, discuss your needs to ensure that you have the right cover to protect against data breaches. Your agent is obliged to find you the best deal that offers the protection required to cover your organisation.

A good way to test whether an agent has the knowledge required to help. Ask them some straightforward questions about the sort of policy you need.

It’s hoped you will never have to claim on your policy, but you want to make sure the process is as hassle-free as possible.