Who Needs Cyber Insurance?

Cyber Insurance isn't just for tech companies and banks who manage a large volume of transactions. As businesses become increasingly dependent on digital systems, cyber risk is an important topic to consider.

Even in Latvia, many businesses and individuals are at risk for cybercrime, service outages, and data breaches. In this article, we will explain who needs cyber insurance so that you can make an educated decision for your business.

Businesses Who Rely on Digital Services

If your business sells goods or services online, an outage in any part of your pipeline can result in lost revenue and lost customers. Online shops, beauty salons, restaurants, and other small businesses can be affected if they rely on:

• booking services;

• websites;

• delivery platforms;

• cloud accounting or document storage;

• or especially online sales;

Businesses who Rely on Automation Systems

A cyberattack or server failure can halt manufacturing or shipping for days. When automation breaks down, employees may be pushed to compensate, orders may go unfulfilled, revenue can be lost, and customers could lose trust. These businesses can include:

• Manufacturing, logistic, industrial companies;

• agricultural, food processing, companies and warehouses

• online shops, hotels, and spas;

• restaurants using using Wolt or Bolt Food,

These types of businesses can be affected by service outages and other issues if they rely on:

• machinery or robots;

• production lines & quality control systems;

• inventory systems, barcode and RFID systems;

• shipping and tracking;

• irrigation, feeding, and harvesting systems;

• hygiene, safety, and temperature control systems;

• access, retrievel, or storage of data;

• apps or other external services like office suites, CRMs, accounting software, etc.

IT service providers and other digital support

Certain individuals working with a company can be liable if a service outage occurs. If a business is affected by the mistake of one of these people, they may be able to sue for damages. Possible groups that could be affected are:

• SaaS providers;

• web hosting services;

• IT teams;

• freelance developers;

• web developers;

• system administrators;

• digital marketers;

• and consultants.

Risks

Data breaches

Many businesses must store client or customer information, such as their name, email, phone number, birthdate or other sensitive information. A data breach can cause severe disruptions to normal processes. These breeches can cause harm to clients, ruin your reputation & trust, and even bring legal disputes, fines, or fees.

Business at risk can include:

• medical or med-spa clinics;

• schools & private tutors;

• real estate agencies;

• e-commerce businesses;

• or any other business which collects information about their clients, customers, or guests.

Be sure to stay up to date on GDPR policies, and protocols in the event of a data-breach.

Fraud or other cybercrimes

Businesses can easily fall victim to scams and fraud, especially if they often send or receive digital invoices, large or small amounts of money, or if there are fewer cyber security trainings available to employees.

The following are just some examples of fraud.

• payment redirection;

• email compromise;

• invoice manipulation.

For example:

“A few years ago, I had a client — a large agricultural company with more than 100 employees. In August and September, the company was extremely busy, and the accounting department was processing a high volume of invoices. One day, the accountant received an email that appeared to be a regular message from the company’s managing director. It requested that €40,000 be urgently transferred to another company. In reality, the managing director had not sent this email. Because the message looked credible and €40,000 was not an unusual amount during that period, the accountant went ahead and made the payment.”— Perks founder, Guntis Zoldners

Who Needs Cyber Insurance?

Cyber incidents can affect businesses of all sizes and industries. Any organization that relies on digital systems, stores sensitive data, or processes payments should consider cyber insurance as part of its risk management strategy.

Business owners and board members are responsible for assessing their company’s exposure and deciding how best to protect operations, finances, and reputation.

Do I need Cyber Insurance?

This is an important question that a business owner must ask themselves and answer. We help businesses understand and compare insurance policies so they can make a confident decision. If you're considering Cyber Insurance, we can provide answers and guidance. Call or write to us, no cost and no obligation.

Perks

+371 26 668 558

info@perks.lv

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