During the past months, we’ve often been reminded to support our local merchants and businesses in a show of solidarity during these challenging times. While we couldn’t agree more, we’re shocked to learn that cyber criminals are also “shopping local” – for valuable customer data that is… In fact, a recent Verizon Data Breach Investigation Report states that 43% of cyber attacks target small businesses just like yours.

Since you already have enough on your plate, here’s an FAQ to help you understand why cyber threats are a reality for small businesses and how Cyber Insurance can help you keep your business running smoothly in the event of a cyber-attack.

Why are small businesses most at risk?

The answer is quite simple. For one, smaller businesses like yours typically invest less in cyber security measures than larger enterprises, and anti-viruses and firewalls simply don’t cut it against experienced cyber criminals. Furthermore, with forced remote work in full effect, employees and sub-contractors often adopt more relaxed vigilance at home making them the ideal gateways for infiltrating your company network. In other words, hackers will prey on your security “weaknesses” to easily access your customer data.

What type of data are hackers “shopping” for? 

While a common misconception is that hackers only look for credit card information, the truth is that customer information which may be stored on your network (ex: first name, last name, address, telephone number, date of birth, mother’s maiden name, employer name, job title, client history information, etc.) can be used to create authentic-looking email or SMS-based financial scams, furthering the chances of putting your customers and your business in danger.

What type of small businesses are most at risk? 

For hackers, there is no preference between product or service-based businesses. What’s important is the amount of “sensitive” data they can find and how quickly they can grab it. Here are a few examples of small businesses that can store big data:

Why should you consider adding cyber insurance to your insurance portfolio?

While the business disruption alone can be damaging enough, the investigation and recovery costs caused by a cyber attack can be crippling. In fact, the National Cyber Security Alliance reports that 60% of small businesses that are victims of a cyber attack go out of business within six months.

What kind of expenses does cyber insurance typically cover?

• Cyber incident response costs
• System damage and restoration costs
• Business interruption costs
• Data recovery costs
• Cyber-attack ransom costs
• Reputational management costs (PR, communications, etc.)
• Legal fees and court attendance costs
• And much more

How much does cyber insurance cost?

While the average cyberattack costs Canadian businesses an average of $100,000 in downtime, cyber insurance is still relatively affordable. For most small businesses, a cyber insurance policy can be added to your standard business policy for only dollars per day.

Cyber attacks are real. Coverage is cheap.
Don’t take an unnecessary risk. 

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