The DaZZee IT Blog - IT Insights

How Much Cyber Insurance Do You Need?

Written by Shane Naugher | Sep 26, 2024 6:15:59 PM

Cyber insurance might sound like just another expense, but when a data breach hits, you’ll be glad you had it. With businesses large and small now prime targets for cybercriminals, having the right amount of coverage could mean the difference between staying afloat or closing your doors. But how much is enough?

Let's break it down in a way that makes sense for small businesses, especially in Missouri, Arkansas, and Kansas.

Here's how to think about your cyber insurance needs.

1. Know Your Risk

Before jumping into insurance, it's crucial to know just how much risk your business faces. As cybercrime continues to rise, small businesses and local governments are prime targets for hackers. Cybercriminals love to go after smaller organizations because they often think, "I'm too small to be worth the trouble." But cyber attackers know that smaller businesses usually have fewer defenses in place.

Ask yourself:

  • How much sensitive data are you handling? (Think customer information, credit card numbers, health records, etc.)
  • Are you relying on cloud services, or do you store a lot of data locally?
  • Are your employees trained to spot phishing attempts and scams?

Cyber insurance should match the level of risk your business is exposed to. The more sensitive the data, the more protection you need.

 

2. Understand What Cyber Insurance Covers

Cyber insurance is more than just a blanket for all cyber risks. It's essential to know what your policy actually protects. Most policies cover:

  • Data breaches (when hackers steal or leak sensitive information)
  • Ransomware attacks (when your data is held hostage)
  • Legal costs (if customer data gets compromised and they take legal action)
  • Business interruption (when your business grinds to a halt because of a cyberattack)

If you don’t have a clear idea of what’s covered, you could end up with gaps in your protection. DaZZee’s Fortify IT services can help you understand your vulnerabilities and improve your defenses before you need to rely on insurance​​.

 

3. Calculate the Impact of a Cyber Incident

No one likes to think about worst-case scenarios, but it's necessary. What would happen if you were hit by a cyberattack tomorrow?

Here’s where to start:

  • Lost Revenue: How much could you lose if your systems were down for a day? A week? A month?
  • Reputation Damage: How much business would you lose if your customers found out their data had been compromised?
  • Recovery Costs: What would it take to recover from a ransomware attack or breach? You’ll need to restore data, manage legal fees, and possibly pay a ransom.

Most experts suggest having enough cyber insurance to cover at least the full cost of one major attack. Some businesses can recover quickly, but others might not be so lucky. If you’re in an industry like healthcare or finance, your exposure could be much higher.

 

4. Tailoring Your Coverage with DaZZee’s Help

Here’s the thing—cyber insurance isn’t one-size-fits-all. You need coverage that’s tailored to your specific needs. DaZZee’s Fortify IT service not only protects your business but also provides a security audit that helps you pinpoint your vulnerabilities and stay compliant​. The combination of proactive IT services and insurance is like having both a seatbelt and airbags in your car—you’re covered no matter what happens.

 

5. Review and Adjust Regularly

Your business is constantly evolving, and so is the cyber threat landscape. The amount of coverage you need today might not be the same next year. Regularly reviewing your insurance policy with your IT partner ensures that you’re not left exposed. DaZZee can help with this through quarterly assessments and 24/7 security monitoring, so you stay ahead of any emerging risks​.

 

Final Thoughts

So, how much cyber insurance do you need? There’s no magic number, but the more you know about your risks, your data, and the potential costs of an attack, the better prepared you’ll be. Small businesses and local governments in Missouri, Arkansas, and Kansas are no less at risk than Fortune 500 companies, and the right cyber insurance, combined with proactive security measures, can make all the difference.

Need help figuring it all out? DaZZee is here to provide tailored advice and Fortify IT services to strengthen your defenses. Schedule a consultation today, and let’s talk about what level of protection makes sense for your business​​.