More and more Americans are leaving their cubicles to work on their own. Well, why not? You decide how to run your business. You decide when to work. Who is on your team is up to you. Those are some great perks. So it’s not surprising that there are 15 million self-employed professionals in the American workforce right now, and that number could nearly triple in the next two years.
But there are some things you can’t control or plan for in business or in life. What if something goes wrong on the construction site and one of your clients gets hurt? Or what if you get hurt in a freak accident and can’t work anymore? Those “what if” questions are enough to turn the dream of a self-employed entrepreneur into a nightmare. So, if you work for yourself, you need insurance to protect yourself, your family, and your business. You’ve worked too hard to leave anything unprotected. But how do you know which types of insurance for self-employed people need and don’t need? Let’s look at types of insurance that will make you feel safe.
Self-Employed Business Insurance
Whether you’re a plumber or a freelance writer, there’s always a chance of something going wrong with your job. Some people are more likely to get hurt on the job, while others may be more likely to be sued. Insurance for self-employed individuals is crucial to cover the risks of your work. Here are the four most important types of business insurance to look into.
Liability insurance will protect you financially in the event that someone sues you for damages after slipping and falling in your coffee shop. Or breaking an expensive vase while cleaning a client’s home. Slander suits are also covered by general liability insurance. This sort of protection is available both as a separate policy and as part of a business owner’s policy.
Listen, we all have our flaws, and everybody messes up sometimes. This is where professional liability comes in handy. It’s insurance that protects you in the event that a client is harmed as a result of a service you provided or advice you gave. It is also known by its more common name, errors and omissions insurance. Professional liability insurance covers financial losses in the event of injury or damage. While general liability insurance covers injuries and damages to property.
A business owner’s policy (BOP) gives your small business protection against a wide range of claims. It does this by combining two types of coverage. Commercial general liability insurance and Commercial property insurance are both parts of its coverage.
The part of a BOP called “general liability” protects your business in case someone makes a claim against you or your business. General liability insurance protects you from lawsuits if something like a customer slipping on a wet floor. Or a faulty product causing damage to a client’s property. Or a claim that your products or services hurt someone. It can also protect you from libel, slander, and certain advertising lawsuits.
The property part of a BOP helps protect the buildings, equipment, furniture. And stock that you own, rent, or lease for your business. It helps pay to fix or replace things that are stolen, broken, or destroyed, even if they don’t belong to you but were in your care. It can also pay for things like rent, payroll, and other bills while your property is being fixed or replaced after a fire or other covered loss.
If you have employees, no matter the nature of your business, you are required by law to carry workers’ compensation insurance. Workers’ compensation insurance, also known as “workers’ comp,” is a mandatory type of coverage that will provide financial support to your staff if they sustain an injury while performing their job duties. It serves as a disability insurance pool that reimburses workers monetarily and/or provides medical care in the event of an illness or injury. If you want to learn more about the workers’ compensation laws in your state, you can visit the state by state guides on our site.
Physical dangers such as injury and property loss are ever-present in the business world. However, there are dangers associated with using technology that could affect your company. Data leaks and hacking are just two examples. Information about customers’ identities or medical histories that you store on company computers is a prime target for hackers. In order to quickly recover from a data breach or cyberattack, it is crucial that your company be covered by data breach or cyber liability insurance.
If you’re in business for yourself, it’s important to have a basic understanding of health insurance. As a first step, you should enroll in a health insurance plan. If you do not have health insurance this year, you could be fined by the government depending on what state you live in. More importantly, you and your loved ones are taking a serious risk if and when a medical emergency arises.
In addition, if you have been relying on your employer to provide health coverage, you may be in for a rude awakening when you compare prices. Since you no longer have an employer to split the cost of health insurance with, you must do so on your own. The good news is that self-employed professionals can reduce their tax liability. The quickest way is by deducting the money they spend on health insurance premiums.
How To Reduce The Cost Of Self-Employed Health Insurance
A high-deductible health plan (HDHP) is a good option for those looking to save money on health insurance premiums. A higher deductible on your health insurance plan means you’ll have to pay more out of pocket for medical care before your policy kicks in. However, the trade-off is cheaper premiums every month.
Opening a health savings account (HSA) is an option with your high-deductible health plan, making it an even better value. The funds built up in a health savings account (HSA) are exempt from federal income tax, allowing you to save tax-free for future medical expenses. It’s a good idea to consult with an EZ agent, who can explain your options and guide you toward a policy that works for your finances and your loved ones. They will assist you in locating competitive rates and suitable protection.
Self-Employed Disability Insurance
If you’re self-employed and become ill or injured and unable to work, disability insurance could help replace some of your lost income. There are both public and private options for disability insurance. The government provides some options, such as the Social Security Administration and some state programs.
When you’re self-employed, you can buy your own disability insurance policy rather than participating in a potentially more expensive group plan through your employer. You may still be eligible for a group policy through your spouse’s employer or a trade group. You may have more options with an individual policy, but the premiums may be higher. Policy features such as the waiting period, riders, and the definition of disability may be up for negotiation.
Short vs Long Term Disability Insurance
Disability coverage comes in two flavors: long term and short term. Long term disability insurance typically has an elimination period of several weeks to months and a benefit period of several years up until retirement. There may be no waiting period or one as long as two weeks before benefits begin with short term disability insurance. Although long term disability insurance that pays out until retirement age is ideal, a short term policy could be worthwhile as well. In general, shorter waiting periods and longer benefits payout periods tend to come with higher premiums.
For an additional premium, you can secure coverage that the insurance provider can’t revoke for any reason (including your failure to pay premiums) with a noncancelable policy. With guaranteed renewable policies, the insurer cannot cancel your coverage. But they can raise your premiums along with other customers in your rating class. Additional riders, such as cost-of-living adjustments (COLA), residual benefits in the event of a partial disability, premium refunds for going claim-free, premium waivers in the event of a disability, and so on, can be purchased for an additional cost.
EZ Can Help
Working independently or as a freelancer allows for more freedom and a better work-life balance. One disadvantage is that you will be responsible for arranging your own insurance. It’s essential that you do this. Since an accident or emergency can cause financial ruin if you don’t have the proper insurance. As a result, self-employed people who don’t have insurance are taking a risk by not doing so. However, EZ can help! We offer free instant quotes on business insurance for the self-employed and we can even help you find the best plans for you. Enter your zip code in the box below or call one of our licensed agents at (855) 694-0047 to get started.
Embarking on a business venture is an exciting journey filled with possibilities and opportunities. However, it’s essential to be prepared for the unexpected challenges that may arise. One crucial aspect of this preparation is securing the right business insurance. Each industry faces unique risks. So, understanding the types of insurance coverage needed is key to safeguarding your business. As well as ensuring its long-term success. In this article, we’ll explore common business industries and the types of business insurance they may need. Shedding light on why these policies are essential.
Types Of Business Insurance
Before we go over what types of insurance different industries need. Let’s look at the different types of business insurance policies available.
General liability insurance is a fundamental type of business insurance. It provides coverage for a range of common risks and liabilities faced by businesses. Also known as commercial general liability (CGL) insurance. It is designed to protect businesses from financial losses associated with third-party claims of bodily injury, property damage, and personal injury. General liability typically covers:
Bodily Injury
Bodily injury coverage helps protect your business in the event that someone is injured on your premises or as a result of your business operations. This coverage can help pay for medical expenses, and legal fees. As well as any potential settlements or judgments if your business is found liable for the injury.
Property Damage
Property damage coverage provides protection if your business causes damage to someone else’s property. This could include damage to a client’s home or office space. Or damage to other physical assets belonging to third parties.
Personal and Advertising Injury
Personal and advertising injury coverage is designed to protect against non-physical injuries, such as libel, slander, or infringement of copyright. If your business is accused of damaging another party’s reputation through advertising or other communications, this coverage can help cover legal costs.
Legal Defense
General liability insurance typically covers the costs of legal defense, including attorney fees, court expenses, and settlements or judgments. This is crucial for businesses facing lawsuits, even if the claims are ultimately determined to be groundless.
Product and Completed Operations
If your business manufactures, sells, or distributes products, or if you provide services, products and completed operations coverage can protect against claims arising from defects in products or services that cause bodily injury or property damage.
Medical Payments
Medical payments coverage helps pay for medical expenses if someone is injured on your premises. Regardless of who is at fault. This coverage is usually more limited than bodily injury coverage, but can provide swift reimbursement for minor injuries without the need for a lawsuit.
Business Property Insurance
Business property insurance, also known as commercial property insurance, is a type of insurance coverage that protects a business’s physical assets. Including buildings, equipment, inventory, furniture, and other property, against various risks and perils. This insurance is crucial for businesses to recover from financial losses that may result from damage or loss of property due to covered events. The key coverage of business property insurance are:
Physical Assets – Business property insurance provides coverage for the physical assets owned or leased by a business. This includes the building itself, if applicable, as well as contents such as inventory, equipment, furniture, fixtures, and signage.
Covered Perils – Policies typically specify the perils or events that are covered. Common covered perils include fire, theft, vandalism, windstorms, hail, explosions, and certain types of water damage. It’s important for businesses to carefully review and understand the specific perils covered by their policy.
Business Interruption – Many business property insurance policies include business interruption coverage. This component helps businesses recover lost income. And cover ongoing expenses if the business is temporarily unable to operate due to a covered event, such as a fire or natural disaster. It can include coverage for rental income, payroll, and other fixed costs.
Replacement Cost – Business property insurance policies may offer coverage based on either replacement cost or actual cash value. Replacement cost coverage reimburses the cost to replace or repair damaged property without deducting for depreciation, providing a more comprehensive form of coverage. Actual cash value coverage considers depreciation, resulting in a lower reimbursement amount.
Cyber liability insurance is a type of insurance coverage designed to protect businesses from financial losses and liabilities associated with cyber-related risks and events. As businesses increasingly rely on technology and digital assets. The exposure to cyber threats such as data breaches, hacking, and other cybercrimes has become a significant concern. Cyber liability insurance helps businesses mitigate the financial impact of these risks by providing coverage for various expenses and liabilities.
Data Breach Response – Coverage for expenses related to responding to a data breach. This may include the costs of notifying affected individuals, providing credit monitoring services, and managing public relations efforts to minimize reputational damage.
Legal and Regulatory Expenses – Protection against legal costs and regulatory fines that may result from a data breach or other cyber incident. Cyber liability insurance can cover the expenses associated with legal defense, investigations, and compliance with data breach notification laws.
Data Restoration – Coverage for the costs of restoring or recreating lost or damaged data as a result of a cyber incident. This may include expenses related to data recovery and reconstruction efforts.
Business Interruption – Compensation for financial losses resulting from a cyber incident that disrupts business operations. This coverage can help replace lost income and cover ongoing expenses during the period when the business is unable to operate normally.
Cyber Extortion – Protection against costs associated with cyber extortion attempts, such as ransomware attacks. This coverage may include payments made to cybercriminals to restore access to data or systems. As well as expenses related to negotiating with extortionists.
Forensic Investigations – Reimbursement for the costs of investigating a cyber incident to determine the extent of the breach, identify the source of the attack, and implement measures to prevent future incidents.
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, is a type of insurance coverage designed to protect professionals and businesses that provide professional services from claims of negligence, errors, or omissions in the course of their work. This insurance is particularly relevant for individuals and companies in service-based industries where clients rely on their expertise and advice.
Professional Negligence – Coverage for claims arising from alleged professional negligence, errors, or mistakes in the performance of professional services. This can include errors in judgment, faulty advice, or failure to meet the standard of care expected in the industry.
Legal Defense Costs – Reimbursement for legal expenses associated with defending against claims of professional negligence. This can include attorney fees, court costs, and settlements or judgments resulting from lawsuits.
Breach of Duty – Coverage for claims related to a breach of professional duty. This could involve a failure to perform services as promised, failure to meet contractual obligations, or other breaches of professional duty.
Defamation – Protection against claims of defamation, libel, or slander arising from the provision of professional services. This coverage can address legal costs and settlements associated with damage to a person’s reputation.
Copyright Infringement – Coverage for claims of copyright infringement related to the creation or dissemination of professional work. This is particularly important for professionals in creative industries where intellectual property is a significant concern.
Workers’ compensation insurance, commonly referred to as workers’ comp, is a type of insurance that provides financial and medical benefits to employees who suffer job-related injuries or illnesses. It is a crucial component of the social safety net and is designed to protect both employees and employers. It helps injured or ill employees by providing coverage for medical expenses, rehabilitation costs, and a portion of lost wages. At the same time, it protects employers from lawsuits related to workplace injuries.
Medical Benefits – Workers’ compensation insurance covers the costs associated with medical treatment and care for work-related injuries or illnesses. This includes doctor visits, hospital stays, surgeries, medications, rehabilitation, and other necessary medical services.
Income Replacement – If an employee is unable to work due to a work-related injury or illness, workers’ compensation provides partial wage replacement. Typically, a percentage of the employee’s pre-injury wages is paid to help cover living expenses during the period of disability.
Disability Benefits – Disability benefits are provided to employees who experience a temporary or permanent disability as a result of a work-related injury or illness. The level of disability benefits is determined by the severity and nature of the disability.
Death Benefits – In the unfortunate event of a fatal workplace injury or illness, workers’ compensation insurance provides death benefits to the surviving dependents of the deceased employee. This includes compensation for funeral expenses and financial support for the dependents.
Business Interruption Insurance
Business interruption insurance, also known as business income insurance, is a type of insurance coverage that provides financial protection to businesses in the event of a covered loss that disrupts their normal operations. This coverage is designed to help businesses recover from the financial impact of a temporary suspension of operations due to covered perils, allowing them to maintain financial stability during a challenging period.
Income Loss – Business interruption insurance covers the loss of income that a business may experience due to a covered event, such as a fire, natural disaster, or other insured peril. This coverage extends to the profits that would have been earned during the period of interruption.
Fixed Costs – In addition to income loss, the policy typically covers certain fixed costs that continue even when operations are temporarily halted. This can include rent or mortgage payments, utilities, and certain other ongoing expenses necessary for the business to resume normal operations.
Covered Perils – Business interruption insurance is triggered by specific perils or events that are covered by the policy. Common covered perils include fires, natural disasters, vandalism, and other events as outlined in the insurance contract. It’s important for businesses to understand the perils covered and, if needed, consider additional endorsements for specific risks.
Product Liability Insurance
Product liability insurance is a type of insurance coverage designed to protect businesses from financial losses and legal liabilities arising from claims related to defects or problems with products they manufacture, distribute, or sell. This insurance is crucial for businesses involved in the production and sale of goods, as it helps mitigate the financial impact of legal expenses, settlements, or judgments resulting from product-related claims.
Bodily Injury and Property Damage – Product liability insurance provides coverage for claims related to bodily injury or property damage caused by a defect in a product. If a product is found to be defective and causes harm to a consumer or their property, the insurance can help cover the associated medical expenses, repair costs, or legal fees.
Legal Defense – One of the primary benefits of product liability insurance is the coverage for legal defense costs. If a business faces a lawsuit related to a defective product, the insurance will typically cover the expenses associated with hiring attorneys, court fees, and other legal costs.
Manufacturing or Design Defects – Product liability insurance typically covers claims arising from both manufacturing defects and design defects. Manufacturing defects occur during the production process, while design defects are inherent flaws in the product’s design that make it unreasonably dangerous.
Employment Practices Liability Insurance (EPLI)
EPLI is a type of insurance coverage designed to protect businesses and employers from the financial consequences of employment-related lawsuits. These lawsuits can arise from various employment-related issues, such as wrongful termination, discrimination, harassment, retaliation, and other violations of employment laws. EPLI provides coverage for legal defense costs, settlements, and judgments associated with such claims.
Wrongful termination claims – Protection against claims of wrongful termination or dismissal, where an employee alleges that their termination violated employment contracts, implied contracts, or anti-discrimination laws.
Discrimination claims – Coverage for claims of discrimination based on factors such as age, gender, race, religion, disability, or other protected characteristics. EPLI helps businesses address allegations of discriminatory practices in hiring, promotions, and other employment decisions.
Harassment claims – Protection against claims of workplace harassment, including sexual harassment or other forms of harassment that create a hostile work environment. EPLI assists in covering the costs associated with investigations, legal defense, and potential settlements.
Third-party liability – Some EPLI policies may provide coverage for claims brought by non-employees, such as clients, customers, or vendors, alleging wrongful employment practices.
Commercial auto insurance is a type of insurance coverage designed to protect businesses and their vehicles used for business purposes. This insurance provides financial protection in the event of accidents, injuries, or property damage involving vehicles owned or operated by a business. Commercial auto insurance is crucial for companies that rely on vehicles for various business activities. Including transportation of goods, services, or employees.
Business Owned Vehicles – Commercial auto insurance covers vehicles owned or leased by a business and used for business purposes. This can include cars, trucks, vans, and other types of vehicles essential to the business’s operations.
Liability – Liability coverage is a fundamental component of commercial auto insurance. It provides protection against bodily injury and property damage that the business may be legally responsible for in the event of an accident. This coverage helps pay for medical expenses, repair costs, and legal expenses associated with third-party claims.
Collision – Collision coverage is designed to cover the cost of repairs to a business-owned vehicle in the event of a collision, regardless of who is at fault. This coverage helps businesses get their vehicles back on the road quickly after an accident.
Uninsurance/Underinsured Motorist – This coverage protects the business and its drivers in the event of an accident with a driver who either has no insurance or insufficient insurance to cover the damages. Uninsured/underinsured motorist coverage helps bridge the gap in such situations.
Industries
As we said, every industry is different. While most policies can help all of these industries there are certain policies that each industry needs more than the others.
Retail
The retail industry is a dynamic and ever-evolving sector that thrives on customer interactions, sales, and the management of diverse inventory. Amidst the excitement of running a retail business, it’s crucial for owners to prioritize risk management by investing in the right insurance policies. From protecting against potential liabilities to mitigating financial losses. A tailored insurance strategy can be the key to long-term success in the retail landscape. Retail companies typically need:
General liability insurance.
Commercial property insurance.
Workers compensation insurance.
Business interruption insurance.
Product liability insurance.
Cyber liability insurance.
Professional Offices
The professional office industry is a diverse and dynamic sector encompassing various professions. From legal and accounting services to consulting and creative endeavors. Amid the hustle and bustle of daily operations, it’s paramount for professionals in this industry to prioritize risk management by investing in the right insurance policies. From protecting against potential liabilities to mitigating financial losses, a well-tailored insurance strategy is crucial for ensuring the sustained success of professional offices. These types of companies need:
Professional liability insurance.
General liability insurance.
Cyber liability.
Business property insurance.
Workers’ compensation insurance.
Employment practices liability insurance (EPLI).
Construction
The construction industry is a powerhouse of growth and development, transforming blueprints into structures that shape communities. Amid the dynamism and innovation, construction businesses face a myriad of risks that can impact projects, finances, and reputations. To safeguard against unforeseen challenges, it’s crucial for construction companies to have a robust portfolio of business insurances. From protecting against accidents on the job site to addressing potential legal liabilities, the right insurance coverage is the cornerstone of a successful construction business.
General liability.
Commercial property.
Workers’ compensation.
Professional liability.
Commercial auto.
Food Service
The food service industry is a vibrant and dynamic sector, offering a myriad of culinary delights to consumers worldwide. While chefs and restaurateurs focus on creating exceptional dining experiences. It’s equally crucial for businesses in the food service industry to prioritize risk management through comprehensive business insurance. From protecting against liability claims to ensuring the safety of employees and patrons. The right insurance coverage is the key ingredient for sustained success in the food service realm.
General liability insurance.
Commercial property insurance.
Business interruption insurance.
Product liability insurance.
EPLI
Working With EZ
In every industry, the importance of business insurance cannot be overstated. These policies act as a safety net. Providing financial protection and peace of mind as you navigate the challenges of running a business. Whether you’re in retail, technology, construction, healthcare, or any other industry. Understanding your unique risks and securing the appropriate insurance coverage is a proactive step toward building a successful business. Consult with insurance professionals to tailor a policy that suits your specific needs. Ensuring that your business is well-prepared for whatever the future may hold.
No matter what type of business insurance you need, EZ can help. Our agents work with the top insurance companies nationwide to make sure you find the best insurance for your business. In fact, we can save you hundreds of dollars a year by working with your budget to find you the best coverage. If you have questions, feel free to give us a call at 877-670-3538 or enter your zipcode into the box below for free instant quotes.
You have probably heard or read about something like this in the news- a large company is hacked, leading to a major data breach. For example, not too long ago, big box store Target was the victim of a hacker, and thousands of customers had their sensitive information exposed. Fortunately for big companies like Target, they are large enough to survive a cyber liability lawsuit. Unfortunately, many small businesses aren’t so lucky. In fact, more than 60% of small businesses go under within 6 months of a cyberattack. Cyber liability breaches (and claims) come with expensive legal settlements and large fines, not to mention damage to your reputation and brand. It is important to have the right cyber liability insurance policy, because recovering from a cyber security breach can drain your business’s time and money.
How Much Can Cyber Claims Cost Your Business?
A data breach can cost your business thousands, even millions of dollars.
Data breaches can cost your business an enormous amount of money. There is a lot you need to do in the case of breach, which all adds up. You have to notify all of your customers whose information was affected as soon as possible (as required by state law). You must also investigate and correct the breach, which can cost a lot of money, and take months or even years. A study from the IBM/Ponemon Institute found that data breaches cost businesses $242 per stolen record on average. That means the average U.S. data breach costs more than $8 million.
The reason cyber liability claims cost so much is that they include the costs of:
Finding and repairing the cause of the breach– Hiring an expert can cost anywhere from $200 to $2,000 per hour.
Notifying customers– Contacting the affected parties can cost anywhere from $1 to $5 per notice.
Credit monitoring for affected customers for two to three years– This can cost anywhere from $10 to $30 per individual, and needs to continue for at least 2 years.
Fines or penalties
Client’s financial losses if you are sued– The average cost for legal defense is $740,000, while the average legal settlement is about $2 million.
Defense costs and legal fees
What Cyber Liability Insurance Covers
While some small business owners might think that cyber liability insurance is only necessary for big companies, this couldn’t be further from the truth. Any business, no matter the size, can be hacked, and a network failure or breach can end up costing you hundreds of thousands of dollars. Any business that operates online and handles sensitive information needs cyber liability insurance. For example, if customers use credit cards to pay for your services on your site, then you are at risk of a breach.
Cyber insurance provides protection for your business from financial losses as well as the cost of data loss to your customers. It covers:
Cyber Extortion– If a hacker accesses your database and is holding it for ransom, cyber liability insurance will help recover those losses.
Forensic Support– Your policy will cover investigation-related expenses and consultation fees.
Legal Fees– Cyber liability insurance helps pay for legal help and advice when dealing with a lawsuit brought by clients or staff.
Business Interruption– A data breach affects your day-to-day operations, which leads to additional losses of income and revenue. Cyber liability can help cover these losses.
Different Cyber Liability Insurance
There are two kinds of cyber liability coverage:
First-party cyber liability insurance covers costs from a cyberattack or data breach on your own network or systems.
Third-party cyber liability insurance protects businesses from lawsuits related to a cyber incident that affects a client.
Cyber liability insurance might seem pricey, but when considering the cost of cyber liability claims, it is a necessary expense. If you are worried about the cost, remember that there are many different plans that can be tailored to your specific business and needs. You can choose how much coverage you need and how much you can afford to spend. Most business owners add first-party cyber liability insurance coverage to their general liability policy, so you might be able to get a deal if you bundle your policies.
If you are interested in cyber liability insurance, and do not know where to start or what type of coverage you need, EZ can help. EZ.Insure understands just how important it is to protect customer’s information. We will provide you with an agent to help you find the right plan to fully cover you and protect your customers’ privacy. Your agent will compare quotes from all plans available in your area, and find the best plan at the best price. Even having the best cybersecurity does not completely eliminate the risk of a data breach, so it is best to protect your business with insurance. To get instant free quotes, simply enter your zip code in the bar above, or to speak directly to an agent, call 888-615-4893.
No matter what kind of business you run, cybercrime is always a threat. But there are some very scary statistics surrounding cybercrime attacks in regards to small businesses: according to the 2018 Verizon Data Breach Investigations Report, 58% of cyber attack victims were small businesses. Not only that, but studies show that 60% of small businesses who needed to suspend operations after a cyberattack were never able to reopen.
You may be thinking that cyber security isn’t top of your list of priorities right now, but you could be making a very costly mistake. The recent focus on keeping businesses running while also keeping employees safe has actually meant a rise in cyber crime.
Working from Home
Nearly 35% of people who were working pre-COVID19 were working from home by April.
Face masks, social distancing, toilet paper shortages, everyone has felt the effects of the recent pandemic. One of the biggest changes to many people’s lives has been the switch from working in an office environment to working from home. In fact, according to an MIT study from early April, nearly 35% of people who were working pre-COVID19 were working from home by April. Add that to the roughly 15% of people who were already working from home and you have, by some estimates, close to 50% of the workforce working from home.
Time will tell whether working from home is here to stay, or whether we will all eventually head back to the office. While there are many who are skeptical that we will become a fully work-from-home economy, there are many who believe that the way we work is forever changed. According to Patricia Strach, interim executive director at the Rockefeller Institute, “this forced work-from-home experience is showing us that work-from-home arrangements are a viable strategy for many businesses and that this is likely to be true even after the crisis is over.”
The Risks
While there are many advantages to working from home, there are also drawbacks. One major disadvantage is that more employees working from home seems to equal a big rise in cyberattacks. One type of attack that is on the rise seems to be directly related to the recent pandemic: phishing expeditions. Businesses have reported receiving a huge amount of phishing emails, which are used to implant malware in a computer that can give hackers an opportunity to demand a ransom or steal data. The phishing links that employees most often clicked on were ones that claimed to be information about the coronavirus. Cybercriminals have been taking advantage of people’s hunger for information on the virus to gain access to business’ data. According to Marc Rogers, head of security at the long-running hacking conference Def Con and a vice president at security company Okta Inc., “I’ve never seen this volume of phishing. I am literally seeing phishing messages in every language known to man.”
So many employees logging in from so many locations also poses a big problem. Without a strong virtual private network (VPN), or if employees are using public networks, then every time someone logs on they are exposing data to hackers.
Workers are also more likely to click on links or visit websites they wouldn’t normally visit in the office. Not only that, they are all downloading legitimate software like Zoom for meetings – and each time they do so, a cybercriminal has a chance to hack into a company’s computer systems and steal data and passwords. According to Darren McGraw, president of Mechelsen Private Client, “all of a sudden, [so] many employees are scattering and connecting from different directions. So this creates a great deal of opportunity for cyber criminals to jump in where maybe the business hasn’t had a chance to control.
Protecting Your Business
“Firms that will do the best if they’re hit with a cyber attack are the firms that have a robust cybersecurity plan in place.”
It is unfortunate that there are people out there who will take advantage of a crisis to try and make a quick (and illegal!) buck. But it is something that you and your business need to be prepared for. The first line of defense, is, of course, prevention. According to Lisa Lindsay, executive director of Private Risk Management Association, “Firms that will do the best if they’re hit with a cyber attack are the firms that have a robust cybersecurity plan in place that is continually vetted, reviewed and practiced so that employees know the standard operating procedure. If they believe that a breach has occurred or that they may have been infected, they know exactly who to call and what to do in a timely fashion.” In other words, be prepared.
But, as we have seen, unusual times such as we’ve experienced recently often mean that criminals will change their tactics or become more sophisticated. It is important to have the right insurance to protect you in case the worst does happen, because your general liability insurance excludes cybercrime. In these cases, you will need cyber liability insurance, which can cover damages to your customers as well as damages to your business.
You don’t need to go it alone when it comes to finding the right cyber liability insurance for your business. EZ.Insure is here to help, and will connect you to your own knowledgeable agent. With one of our agents, you never have to wonder if you’re going to get the right protection at the right price. To get started with us – for free – simply enter your zip code in the bar above, or you can speak to an agent by calling 888-615-4893.
It’s no secret that the internet is changing the way society interacts. This goes from social media affecting our relationships and the way we view each other, to the rising rates of cybercrime on the web.
The damage an act of cyber theft can leave on your business is crippling, it can also ruin your reputation.
The damage an act of cyber theft can leave on your business is crippling. Not only can it leave you feeling violated, scared, and confused, it can also ruin your reputation for safety amongst your customers–one fatal mistake for any small business. It’s already hard enough to survive in the current corporate atmosphere.
The first step is to be aware of the risks. The next one is to learn how to protect yourself.
Cybercrime Stats
First, let’s take a look at what constitutes cybercrime:
Selling illegal items online
Human trafficking
Identity theft
Malware/Ransomware
Privacy violations
Digital currency scams
The sad fact that combined, all of these contributed to over $1 trillion in profits for cybercriminals across their industries, and that number is still growing. Things seem bad now, but what does the future hold if these crimes continue to rise? To put things into perspective, most countries fall below the trillion-dollar mark–so cybercrime could be considered its own nation on profits alone.
Social media is the biggest channel criminals use to engage with people outside of the dark web. While sites like Facebook do invest money in protecting people’s private information, most people readily volunteer this info on their public pages. A criminal simply has to look at a profile to see things like where you’re checking in, what current interests you have, and even job history or address. To put things into perspective:
Social engineering is more useful the more information you have about someone.
Cybercrime tools are widely available for purchase.
Social media fraud attacks on the rise, up to 43% since 2018.
This provokes the question of how much balance can someone maintain. While these numbers are dire, there’s no getting around using social media for marketing.
It seems like no one is safe, but small business owners have a lot more to lose. 85% of phishing or social engineering attacks were reported by organizations in 2019, and that’s just the reported ones. We can’t even begin to estimate how many are in the private sector as some could be so subtle, they’re either ignored or outright passed over.
If you’re in the professional services industry, such as any business needing a license to operate, then you’re most at risk for these attacks.
For any company, malware is going to be your biggest threat. In 2018, malware cost companies upwards for $2 million, growing over 10% from the previous year.
If you’re in the professional services industry, such as any business needing a license to operate, then you’re most at risk for these attacks. This is because your industry type often has a wealth of private data for your clients, and yet most go with little to no protection.
Finally, the costs of cybercrime are intense. Top companies pay an average of $25 a minute to keep themselves protected, altogether, the costs can soar to around $3 million. That’s an incredible sum just considering it’s to protect against a criminal industry that’s making a hundred times more.
What Is the Best Way to Protect Yourself?
Odds are, you might have fallen victim to some form of cybercrime in the past. If you’re currently suffering, we have a guide here to help you out.
If you’re lucky enough to still be on the other side, then the best thing to do is join the industry with coverage, malware protection, and simple scam awareness.
The best way to protect yourself is with cyber liabilty coverage which offers malware protection, and simple scam awareness.
Cyber liability insurance is designed for just these types of situations. With this policy, you’ll have coverage for:
Lost or damaged electronic data
Computer operations Interruption
Privacy & Notification to customers and other affected parties
Some may offer protection from lawsuits
This is your first line of defense, besides that, keep up to date with current protective software, and if something seems too good to be true from an email, it probably is.
EZ.Insure is there to make sure you’re not alone in protecting your business. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing [email protected] or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.
