Login Click here to open and close mobile menu Home : About Selective : Unique Perspectives : Don’t Risk Your Small Business to Cyber Risks Click here to open share options DON’T RISK YOUR SMALL BUSINESS TO CYBER RISKS By Michael MacMullin Vice President, Small Business The COVID-19 pandemic forced many small businesses to adapt their operations, including taking extraordinary steps to preserve employee and customer safety. While these resourceful actions were often necessary, they could also introduce new risks that require careful insurance considerations. As we begin to get a glimpse of what a post-pandemic world might look like, now is an excellent time to evaluate the adaptations that may remain in place to ensure they don’t open your business to unacceptable risks. If any of the following operational shifts sound familiar, it is important to understand the associated issues. Thankfully, one way to help protect your business from these risks is by updating your cybersecurity insurance coverage. Enabled employees to work from home. The pandemic lead to a mass exodus from workplace offices to home offices, and for good reason – it kept employees safe while giving them the flexibility to keep working. However, allowing employees to use their personal devices or even company devices at home could present security risks such as cyber threats. For example, remote work has increased the average cost of a data breach by $137,000, according to the 2020 Ponemon Institute report. The impact of a data breach can be existential to a small business without cyber insurance. Entered into a formal or informal partnership with another company to tide you both over during the pandemic. Such agreements usually involve sharing of data, which leads to concerns about data security and breaches. In addition, any commingled operations could create new risks from an insurance perspective. Using a new supplier. Changing suppliers can affect a host of business areas, including customer contracts, product liability, and data access. Changed the mix of products and/or services you offer. New products come with new and sometimes hidden liabilities, as do expanded services like home delivery or curbside pickup. Any of these new offerings can have implications for the kinds of insurance coverages you carry, including Workers Compensation and Auto Liability. Small businesses have unique risks, including some that have been exacerbated by the pandemic. An independent insurance agent who understands your business and your risk profile is one of the best business partners to have. A recent study from Selective and Appalachian State University found that 55% of small business owners or managers preferred to do business with an independent agent. An independent insurance agent can provide expert advice and guidance about new exposures your business may face in the post-pandemic era and help ensure that the risks are appropriately covered through customized small business insurance policies. Risks to small businesses are continually evolving. It is essential to take time to think about how your business has evolved through the pandemic and what exposures you may have or will have in the future. A review of your business's insurance coverages is a key consideration to ensure you keep protecting your business well into the future. About the Author Mike MacMullin is Vice President of Small Business and leads a number of initiatives that enhance Selective's small business operations, including technology and service model advancements. Mike’s career at Selective has spanned more than 18 years, where's he built a diversified background in roles that have well-positioned him to lead Small Business, including Vice President Enterprise Program Management Office; Vice President, Information Strategy and Knowledge Management; Assistant Vice President, Personal Lines Operations Program Manager; and Commercial Lines Underwriter. GETTING UNIQUE PERSPECTIVES Are you a publication looking for a unique perspective from one of our contributors? Contact us for further details. Related Cyber Topics Cyber Crime is a Growing Concern for Small Business Study Finds Be Proactive: Cracking the Code for Small Business Cybersecurity Cybercrime and the Pandemic Privacy Notice CCPA Request AdChoices Do-Not-Call Policy User Agreement Text Consent Agent Compensation Purchase Order Terms and Conditions Confidentiality Notice: NY Victims of Domestic Violence Get Social: facebook Instagram linkedin twitter youtube Download Selective’s Mobile App: © 2021 Selective Insurance Group, Inc. Delivered by Investis Digital