Insurance Insights

Millions of small business owners across the country are now using technology in a large number of ways, but those who are also taking advantage of emerging options are growing in number as well.

One of the most common things companies might think about their chances for being victimized by a hacking attack or accident that results in a data breach simply can’t or won’t happen to them, but the fact of the matter is that the threat of this type of incident taking place is quite high. New statistics from the state of California highlight just how real this issue can be.

Data shows that data breaches are becoming far more common these days and often affect small businesses most significantly. This is a prime reason for many owners of these companies to understand just how vulnerable they are, and take steps to remediate the issue.

“Cyber threat is one of the most serious economic and national security challenges we face as a nation,” said President Obama. He goes on to say, “America’s economic prosperity in the 21st century will depend on cybersecurity.” His 2013 State of the Union Address also mentioned the vulnerability we have to enemies working to sabotage our power grids, financial institutions, and even our air traffic control systems.

Data breaches are becoming a fact of life for almost any organization that collects and maintains large amounts of information on consumers or clients. In fact, a recent incident suffered by the state of Indiana shows how easy it can be for these exposures to take place, and could illustrate just how important it is for small companies to have tech insurance to protect themselves in the event that such an issue arises for them.

Many small businesses across the country are now playing a potentially dangerous game with regard to the ways in which they allow employees to transfer and carry sensitive data, and that could put them at risk for a breach. As a consequence, making sure there is adequate tech insurance in place before allowing for this new trend is often of the utmost importance.

Small business owners generally have a lot on their plate, whether it’s focusing on expanding their companies or figuring out which small business insurance policies are best for their futures. However, because of this, it might not always be easy for them to spot potential scams that can end up costing them significantly.

Many small business owners across the country who have to worry about the ways in which their companies store sensitive customer or client data may be well aware of just how much they can benefit from tech insurance and other measures to safeguard them from data breaches and their fallout. However, when it comes to complying with state laws, they may have considerable difficulty in understanding what they need to do following such an incident.

Companies big and small can be impacted by data breaches in general and a recent case in Florida highlights just how much damage such an incident can cause in a very short period of time, and why it might be vital for small businesses to take on tech insurance that help protect them from the costs of fallout.

Traditional firewalls have been rendered virtually ineffective in the war against cybercrime for a couple of major reasons. First their protection was extremely limited. They were only designed to protect by controlling specific ports or protocols or to block traffic from specific IP addresses. Second, more and more legitimate businesses are beginning to use the web protocols standard firewalls disallow. So much so, that people give little thought to overriding the objections of existing firewalls even when they shouldn’t.