The Expert Podcast

Don't you hate buying insurance Think about it You pay insurance premiums all year or every year And what are you getting returned for it You get nothing put in your hands You don't get a car to drive You don't get a house to live in You don't get food you don't get gasoline for your car You get nothing
That's why people hate buying insurance And in fact You know one of the cliches about the insurance business is People don't even want to sit next to an insurance agent at a cocktail party because all they're going to try to do is sell you insurance
But there's something as a business owner or a consumer That's helpful to know about the insurance industry that might help Save you money or Save you from having losses especially when it comes to cyber liability insurance So let's take a look So that way you don't have to hear it from an insurance salesman Here are all the things that cyber liability insurance salesman's going to tell you so you can read about it on your own And you don't have to listen to them and you can take each one With a grain of salt whatever is interesting to you However I can tell you this That's cyber losses Cyber attacks is the largest growing Type of risk in a specialty a business And if you're a small business large business and you don't have this kind of coverage I'll take my word for it I can't sell you cyber insurance anyways Because you probably don't live in a state where our agency can cover But it is an important thing to be aware of and you probably don't even have to talk to an agent to buy this You could probably buy it online But the reason that's important and here's an article from inside the industry how to sell insurance So Pretend you are A buyer This is what you're going to hear from your salesman
What are the facts about cyber attacks The average cost of a data for a business is 800,000 40% of those target small to mid-sized businesses So think about it Could your business afford a loss of 800,000 66% of small businesses didn't realize it until six months later what would it be like if you had a loss like your building burned to the ground but you didn't know it for six months This is a big deal
Here's some industries that are Vulnerable But it really extends beyond that And you have different coverages One covers you as a business For things like loss of electronic data loss of income What if you have to shut down for a week to fix all your servers and your mainframes Could you afford to not have revenue for a week or more What if you have to pay an extortion Ransom Because a hacker has your entire system locked down And if you don't pay they're not going to release it or they have all your customer files and they're going to put it out into The public You might also to make notification many states and the federal government have requirements To notify impacted parties If a company has a data breach meaning that if your company Has data stolen from it that has customer information Even if that information is not disseminated It was not released You have to notify the parties that it could happen And sometimes provide things like credit monitoring or dark web monitoring to make sure that they don't have losses And if you don't do it You might have penalties and fines even if you do do perform notification sometimes there's penalties and fines involved What else are costs You might have damage to your reputation meaning that Maybe if this happens some of your clients might get wind of it and you might lose clients
You might lose customers You might lose employees Because of a data breach that makes people Insecure about the confidence of doing business with your working for you
You also can have third-party coverage meaning that your clients could also have losses What happens if you have a breach or hack of your system
And through that the hacker is and they able to get into your client's system Maybe there's a connection between your servers from your computer to the client's computers
And they could have losses and they could Demand that you make them whole you can also have infringement of electronic media maybe it's social media Maybe it's public records So as an insurance professional the experts say that Many small business owners don't feel like they need cyber insurance It's important to remind them that businesses Any business that makes transactions is vulnerable So look we're not here to beat you up or to You know Coroner you two you need to buy insurance just be aware Of the risks that you have to your business If you don't have insurance if you decide not to get it because you've understood the risks and still want to go what they call bare without coverage that's fine As long as you understand the risk But It's important to know what the risks are and you can learn this on your own You don't need any insurance agent to go through this with you you know your business more than anything else Things like do you accept credit card payments Do you have a loyalty pro do you have a mailing list that you store for your clients Do you have a website Just a hacker gets into your website They can do a lot of damage do you access any third-party services on behalf of clients meaning that do you Salesforce or Google docs or Dropbox maybe your client can get through that So these are all things that as a small business you want to be aware of Make sure That if you decide to not have coverage you're aware of the savings that you have for premium costs And if it's worth not having that expense to take on liability for yourself Either way if you have coverage or not You want to use industry best practices For protection of your data and records so that if something does happen you can at least show regulators government agencies or your customers Look we at least had some Protections in place two factor authentication firewalls updates patches those kinds of things because if you don't do those And you do have a loss Your liability could actually be more Because it was considered negligent You didn't do the basics And insurance company If you do have a policy we'll help you make sure you know what those best practices are They'll tell you believe me every month Hey are you doing your backups Hey do you have secure passwords Are you changing your passwords They'll remind you almost bugging you about it but it's a good thing because that's their job to help prevent losses You can get more information on our website You can also do a consultation without a sales pitch From our Consulting side TelaClient.com And if you have any questions reach out to us anytime