Owning your own business can be a liability landmine. Just one mistake can mean the end of the business that you’ve invested so much time and money in. The biggest mistake you can make is not having the right commercial insurance coverage. EZ knows you worked hard to start your business, and we want to help you keep it going strong. We can guide you through some of the common mistakes business owners make, and the ways we can keep you protected against them.
A cyber attack can leave you feeling violated, scared, and confused, and it can also ruin your reputation.
Not Protecting Your Business Online
So much of our business is conducted online these days, and not having cyber liability insurance is one of the biggest mistakes you can make. Not only are there a lot of scammers out there working hard to get your financial information, but anyone with access to your company’s accounts – including employees – can steal information and create data breaches. A cyber attack can leave you feeling violated, scared, and confused, and it can also ruin your reputation. If customers’ data is breached, then you will lose their trust, their business, and any future business.
Malware is one of the biggest threats when it comes to cyber security. In 2018, malware cost companies upwards of $2 million, which was an increase of over 10% from the previous year. To keep your business protected from this threat, EZ.Insure offers cyber liability policies that cover:
Lost or damaged electronic data
Computer operations interruption
Privacy & Notification to customers and other affected parties
Lawsuits (in certain types of policy)
Not Protecting Your Workplace
Another major mistake business owners make is not taking into account all of the things that can go wrong at their place of business. Accidents and natural disasters happen. Customers or employees can get hurt at your business, meaning you could end up being sued. A storm could come along and rip through your building. If you are not insured against all likelihoods, not only could you lose your business, but you could go bankrupt, as well.
We’re a business, too, and we get how scary the thought of losing everything can be. That’s why we’ll compare quotes for you on the most important types of commercial liability insurance, like:
General Liability – protects you against lawsuits claiming bodily injury or property damage. It also provides coverage for personal and advertising injury like libel or slander.
Property Liability– protects everything in your business from risks such as fire or theft. There are commercial insurance packages available that will bundle liability and property coverage.
Workers Comp– covers medical expenses and lost wages for an employee who is injured at work. This type of coverage is required by individual states.
Not Delivering on Your Promises
Finally, don’t make the mistake of assuming every customer is going to be satisfied with you and your business. Sometimes you try to offer the best possible service or advice to your customers, but you just fail to deliver. If you break a contract, give advice that leads to loss, or don’t complete a project, for example, then you could end up facing a lawsuit. To protect yourself and your business from these types of claims, you need to have professional liability insurance.
Whether you are starting up a business, or already have one and are looking into commercial insurance, then EZ’s got you covered. We will compare quotes of all the types of insurance policies that your business needs, and will help you choose the best ones for you. Let us help you protect the business that you worked so hard to build. To get free commercial insurance quotes, enter your zip code in the bar above or to speak to an agent call 888-615-4893.
You’re not starting any ordinary small business. You’re building a startup. Your goal is to grow and, in order to do this, you not only need a solid business plan, but also protection for everything that you’re building. Startups are inherently risky, so it is extremely important that you get the right commercial insurance coverage.
Insurance for the First Stages
Startups are all about investment, and you need to think of commercial insurance as another investment to grow your business.
If you’re in the first, or seed, stage of building your startup you are probably excited – and nervous about everything that’s to come. Maybe you’re not thinking about insurance, or think that it’s something that can wait until you’re further along in the process. Nothing could be further from the truth.
Startups are all about investment, and you need to think of commercial insurance as another investment to grow your business. Without it, you won’t be able to attract the best employees or convince investors that you are serious about your venture and are planning ahead for the long run. Even before you have customers, you should have the following policies:
General Liability – something that all businesses should have, this type of insurance protects you against lawsuits claiming bodily injury or property damage. But did you know it also provides coverage for personal and advertising injury like libel or slander?
Commercial Property – if you’ve got office space, then you need this type of policy to protect everything in it from risks such as fire or theft. There are commercial insurance packages available that will bundle liability and property coverage.
Workers Comp– if your startup has or plans on having employees, be aware that this type of coverage is required by individual states. It covers medical expenses and lost wages for an employee who is injured at work.
Tech E&O vs Cyber Liability
Once you’re past that first stage of getting your initial funding, setting up your space, and hiring your employees, it’s time to start thinking about what happens once you are up and running. Now you have customers, and a whole new set of risks.
The above type of insurance policies apply to all businesses, but you may need some specialized coverage for your startup. If you’re dealing with any kind of tech, as many startups do, there are two types of policies you should look into: tech errors & omissions (E&O) and cyber liability insurance. They may sound similar, but they cover different things.
Tech E&O – If you’re a business selling a physical product, then you need product liability in case a product fails. If you’re a firm offering financial or legal advice, then you need errors & omissions to protect yourself against claims of financial damage. If you’re a tech startup, then you need tech E&O. This type of coverage protects your company in the event that one of your tech-based products fails. If you are developing or licensing software, it is important to note that the insurance industry considers software a service and not a product. Because of this, you will need tech E&O, and not the same type of product liability coverage that might be sufficient for other businesses.
Cyber Liability – There is one very important thing that that tech E&O doesn’t cover: third-party data breaches. With all the risks of cyber crime today, this type of insurance is essential if you store any kind of customer data.
While tech E&O covers the failure of software, cyber liability covers the loss of private third-party information. Depending on your startup, you may need both to be fully covered.
As You Grow
If your startup is taking off, congratulations! You’re growing, and are probably looking for more investment and taking on a board of directors. In this case, you’ll need another specialized type of coverage: Directors & Officers insurance.
This type of insurance covers both your business and your management, including their personal assets. It covers:
Theft of trade secrets
Misrepresentation, in the case that investors feel they were givenDirectors & Officers Insurance protects you in the case of misrepresentation.
misleading information, leading to loss
Wrongful acts, covering anything that managers do in their professional capacity that stakeholders deem “wrongful,” and that results in a loss
Having D&O is important for attracting investors, who will feel more confident placing their trust (and money!) with you if you have comprehensive coverage. Your board members/managers will also feel confident making decisions without risk of personal liability.
Startups are unique among small businesses.They’re riskier, but they have more potential for growth. If you’re one of the few who have the vision and the drive, make sure that you protect everything you’re building. And remember, EZ.Insure is here to help you sort out your commercial insurance needs. We’re unique, too! We want your startup to succeed and will work with you to keep you covered. Our services are always free and nobody will ever hound you with endless calls. You have enough to worry about! To get started simply enter your zip code in the bar above, or you can speak to an agent by calling 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 replies@ez.insure or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.
