Samantha Gowda-Singh is a Desjardins Insurance Agent based in Aurora, Ontario.Supplied
Cyber attackers don’t just look for big targets. All types of business, including small and medium-sized ones, can be vulnerable to cyber threats. These can have significant repercussion in costs, down time and reputation. That’s why it’s essential for businesses to protect themselves, through both cyber practices and proper insurance.
Those defences can be stronger. A survey commissioned by the Insurance Bureau of Canada found that 44 per cent of small businesses lack defences against cyber threats, and 60 per cent don’t have cyber risk insurance to help them recover if an attack happens.
“Having cyber risk insurance, as a business owner, has become as important as having general liability insurance,” says Samantha Gowda-Singh, a Desjardins Insurance Agent in Aurora, Ont. “If your business is online, that increases your exposure and therefore your risk.”
As a Desjardins Agent, and a small business owner herself, Ms. Gowda-Singh says that she understands the needs of her clients. She cares about what they care about, and knows the demands they face and support they require. Combined with her knowledge, that perspective helps her to provide solutions that best protect her clients’ business and livelihood.
“Insurance is probably the last thing on their mind, but it’s one of the most critical so that they can just continue to run their business,” says Ms. Gowda-Singh.
Small business owners work hard to build up their assets. Nobody wants to think about the day they will have to make a claim on their business insurance. But at least it offers peace of mind. For owners, what’s far worse is realizing they don’t have the proper coverage to protect those assets.
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That’s why Desjardins Insurance provides its small business clients with the option of adding cyber risk coverage to a new or existing property and liability insurance package. It includes IT and cyber security specialist support, and helps small businesses that have experienced a cyber breach to get back on their feet. The product limits the financial impact caused by cybercrimes like phishing attacks, viruses and ransomware.
Nearly half of small businesses experienced a cyber attack last year, according to another survey by the Canadian Federation of Independent Business. Still, many business owners are under the mistaken impression that they’re too small to be targeted. Others assume that their standard business insurance will protect them, which isn’t the case for the extent of potential damage.
In the aftermath of a cyber attack, a business could be disrupted for days or even weeks. The costs add up. An Insurance Bureau of Canada report states that of all small business owners that have been a victim of a cyber attack, 40 per cent have faced costs exceeding $100,000.
Cyber attacks can be costly in both restoring the computer systems and data of the business, and settling lawsuits brought from customers or clients who’ve had their personal information exposed.
Businesses of all sizes are more at risk than ever, as they continue to keep and share sensitive information in databases, transaction sites and email inboxes – and as cyber criminals improve their techniques.
“There’s always exposure when it comes to a business owner collecting and storing personal data for clients for any type of business purpose,” says Ms. Gowda-Singh.
Targeted sectors include retail, health care, personal care, and business and professional services. Just like their business operations, insurance needs vary from company to company. So it’s important for business owners to talk to someone who can understand their specific needs.
“I make it my business to know your business,” says Ms. Gowda-Singh.
That client-focused approach helps gives her insight into what matters most to business owners, where they have the greatest insurance requirements and what solutions provide the best coverage.
Cyber threats exist for any business but those in professional services – like accounting and auditing firms, financial planners and law firms – must be particularly mindful of the risk as they hold a lot of confidential information about their clients and remain vulnerable. Even as they support their clients in reducing risks, they can be at risk themselves.
In addition to the cyber risks that these professions face, the nature of their work brings an added risk of a different kind.
Despite all of the precautions that a company may take, a client may claim a fault, omission or negligence during the course of activities. This can lead to a lawsuit. To mitigate the risk, Desjardins Insurance also offers optional professional liability insurance to eligible clients.
Consider a bookkeeping service that has this insurance. During the course of recording financial transactions for one of its clients, a small auto shop, the bookkeeper mistakenly entered an unpaid bill as “paid”. As a result, the shop failed to pay a key supplier, which in turn stopped providing services. With a lack of crucial parts, the shop was forced to cease operations for several days, and sued the bookkeeper for loss of income due to business disruption. Professional liability coverage can help to pay for some of the bookkeeper’s legal fees and damages resulting from the error.
Budgeting for the “what ifs” of potential cyber breaches and lawsuits can be difficult when operating margins are tight. When it comes to insurance, many business owners might wonder what they really need and what they can do without, says Ms. Gowda-Singh. “But here’s the thing: you can do it 10 years in advance, but you can’t do it a minute late.”
She says the right expert who has insight into both insurance and small business needs can help work through the logic of various traditional and optional coverages. By listening, assessing and reassuring, Desjardins Agents help ensure their clients have the insurance that’s in their best interests.
“Ultimately, do you want to take the risk by leaving it to the point that you’re self-insuring in the event of a loss? If the answer is no, it’s a matter of working with someone who can help you understand what you need, what you don’t, and how you can try to make it more economical,” says Ms. Gowda-Singh.
Any owner navigates a sea of risks in today’s business world. Having the right coverage offers crucial protection and peace of mind, so they can focus on what’s most important – their business.
To find a Desjardins Insurance Agent and learn more about business insurance protection, call 1-866-740-4765 or visit desjardins.com.
Advertising feature produced by Globe Content Studio with Desjardins Insurance. The Globe’s editorial department was not involved.