Small businesses in the United States are constantly seeking new ways to not only grow in a rapidly changing economy, but also to protect themselves from any risks that may arise when conducting operations or transactions. Sensitive information breaches represent just one of the most common threats that IT or other tech companies face today. Technology insurance is just one of the ways small businesses can protect themselves against any potential risks, such as these sensitive information breaches.
Protect Data And Sensitive Information
According to RiskBased Security, in the first half of 2019 alone, a whopping 4.1 billion records were exposed as a result of over 3,800 data breaches. Verizon reported that 71% of these breaches were financially motivated.
Cybint Solutions also recently reported that in 2018, 62% of businesses were the target of social engineering and phishing attacks. Thus, it is no surprise that many companies are seeking to invest heavily in cybersecurity solutions over the next few years to prevent unauthorized access to private data. Research and advisory company Gartner predicts that global spending on cybersecurity will attain levels of around $133.7 billion in 2022.
Given these statistics, acquiring technology insurance is crucial for small businesses. What follows is a discussion of how technology insurance can benefit and protect a small business.
Analyze Current And Potential Risks
It’s essential for every business, no matter how big or small, to efficiently identify and evaluate both current and possible security risks.
This entails analyzing which applications or systems are most vulnerable to attacks from malicious entities, and what types of safeguards — such as firewalls, antivirus software, multi-factor authentication, drive encryption, backup software, etc. — can be used to combat these threats. A written, detailed security plan is also generally recommended to prepare for such attacks.
Many tech experts agree that the most common types of cybersecurity threats — besides data breaches — are:
- Spear phishing
- “Man in the Middle” (MitM) attacks
- Distributed Denial of Service attacks (DDoS)
- Malware on Mobile Apps
- Attacks on Internet of Things (IoT) Devices: These are technologies like industrial sensors, smart door locks and fitness trackers that have support for internet connectivity. IoT devices are a frequent target for attackers because of their prevalence, distribution around the world and occasionally outdated operating systems.
Coverage After Software Failure
Software systems and applications like operating systems (macOS, Microsoft Windows, Linux, etc.), antivirus software (McAfee, Norton, AVG) and databases like Access and SQL can fail just like hardware can. Protection against these types of failures can save a significant amount of time and money.
Like operating system crashes, software failures often have dire consequences, including financial loss and customer discontent. Software Quality Models (SQMs) are great resources that can help ensure the creation and updating of top-quality software products. These models are frequently based on inductive learning algorithms or data mining algorithms. Backup databases are also deemed to be effective tools for addressing software failures.
From Auto To Umbrella, Stay Fully Covered
Automobile insurance policies as they relate to technology can cover any vehicles borrowed, owned or hired to conduct regular business activities. The two primary components of auto coverage are liability and physical damage. Whether you or someone else suffered any type of bodily injury, the liability component of this type of insurance will cover you. The damage component will protect you against virtually any kind of damage to or theft of a vehicle.
Meanwhile, umbrella insurance, also known as excess liability insurance, policies cover any claims that exceed the limits of a primary liability policy. At MFE Insurance, coverage limits begin at $1 million.
Get A Quote From MFE Today
Reach out to the experienced professionals at MFE Insurance for a quote for your business. MFE has offices in both Los Angeles and Detroit and is dedicated to providing top-quality insurance products at competitive prices for technology, drones, business, and health, among other things.
“MFE Insurance is an absolute pleasure to work with! They are extremely knowledgeable and go the extra mile to help us find solutions to unique requests that our clients periodically ask us to provide,” say Mack Sennett Studios. “They are proactive and provided us with comparable A+ rated insurance at a considerable savings as compared with that of our prior insurance agent. We are very happy and look forward to a long and mutually beneficial business relationship.”
Call MFE Insurance today at 213-266-7990 to receive a quote or to learn more about their products. You’ll hardly find a more reliable insurance agency in your area.