Why Having Cybersecurity Insurance Provides the Best IT Services for Startups

Startup companies are often much easier to hack than major corporations because of their little experience with cybersecurity. They typically allocate their available cash toward business growth, as opposed to data protection. With that in mind, waiting until an attack occurs could cost a startup its entire livelihood. After all, it is more of a challenge to repair consumer confidence when you don’t have the same level of consumer currency as a corporation. Designed to mitigate losses from cyber incidents, cybersecurity insurance covers breaches and restoration costs. Follow along as we think about what IT services for startups should include in order to provide genuine protection.

What should be in my business risk analysis?

Your startup will quickly learn that running a business puts you in line with many types of risks. Upon conducting a business risk analysis, you will be able to better understand what damages you could endure. This includes loss of earnings and productivity. Considering this, you will also be equipped to know what security software and services you need to invest in to protect your startup from these damages.

By outsourcing IT services specifically meant for startups, IT experts can thoroughly examine your issues, launch a response plan quickly, and inform those affected. Here are some of the biggest things that startups need to consider.

  • Data breaches: Often a result of employee negligence, data breaches that steal your business information are expensive to deal with. You would have to pay for the costs of data recovery, regulatory fines, and lawsuits. Plus, you risk never gaining back customer trust.
  • DDoS attacks: This type of attack utilizes multiple compromised computer systems to push a traffic jam. They can be identified through the use of analytics tools. These locate suspicious traffic patterns that are originating from a single IP address.
  • Compliance regulations: Not following legal frameworks for data storage and transmission will cause many issues for your startup. Make sure that you are implementing the measures required by the PCI Security Standards Council.
  • Insider threats: If your employees don’t know the necessary protection practices, they are likely to be a weak link in your cybersecurity strategy. Your startup needs to implement awareness training. That way, employees know how to recognize social engineering attacks and how to respond to them.

Does my startup need cybersecurity insurance?

According to a press release in 2017 by the Committee on Small Business, 60% of all targeted cyber attacks were experienced by small and medium businesses. This resulted in costly implications, with 60% of them losing their businesses in the following six months. By not having the proper cybersecurity measures in place, you may end up as part of that statistic.

With cybersecurity insurance, your startup receives the coverage it needs in the case of an incident. The policy is typically split into first-party and third-party coverage. As a risk-transference tool, you have protection for your business related to breaches, as well as losses that your clients suffer. Cybersecurity insurance comes in handy when you maintain a digital database of personal information and rely heavily on technology for your operations. When deciding on your provider, keep in mind the IT services your startup requires on a daily basis.

What does a computer security incident response team handle?

Computer security incident response team (CSIRT) goals are to regain control and minimize damage caused by cyber incidents. These IT professionals will be able to deliver you an effective security management strategy. In the framework laid out by the National Institute of Standards and Technology, there are five phases. They consist of identification, protection, detection, response, and recovery.

CSIRTs carry out their mission by delivering IT services for startups. This includes both on-site and off-site support. They take on the responsibilities of updating incident response plans, communicating and coordinating information, and recommending changes to prevent future attacks. In regard to their technical skills, they must know intruder techniques, how to encrypt data, and how to maintain incident records and reports. For their non-technical skills, with their work being service-based, they should be comfortable collaborating and providing analytical reasoning.

Why does cybersecurity insurance pay for PR and legal services?

You have reported a data breach. Now, you have to figure out what to tell the individuals who were affected. In a study by AdvisorSmith, it was found that the United States is the most frequent target for cyberattacks, costing small businesses approximately $36,000 to recover. Cybersecurity insurance covers your startup when it comes to managing the situation, from the investigatory costs to the regulatory fines. You may even face third-party class action lawsuits, which could mean huge payouts, regardless of how small your startup is.

Knowing that your IT services are doing everything that they should be doing from the get-go is important for your reputation. With credit monitoring and computer forensics, for instance, your IT team is capable of protecting potential victims. However, cybersecurity insurance directs your attention toward the legal requirements involved in a data breach experience. If the breach involves Electronic Health Records (EHRs) and you are covered by the Health Breach Notification Rule, your legal team must notify the Federal Trade Commission. Should Social Security numbers have been stolen, the team will need to contact the major credit bureaus.

How do IT services for startups create a culture of security?

Working with IT professionals who are knowledgeable about the special experiences of startups gives you a leg up on your competition. Your team is able to be proactive with both cybersecurity and physical security, thanks to having the right tools. Employees should know how to take caution with their devices. On the alternate side, leaders should know how to effectively guide them to that point.

IT services for startups provide insight into hacking trends, system updates, and data access restrictions. Instead of attempting to build in-house skillsets surrounding security, teach what is necessary and use experts for full protection. While nothing is foolproof when it comes to cyberattacks, your startup will only succeed if you are consistently testing and examining security policies. Know how you will react to a data breach and utilize cybersecurity insurance by refining those policies as your business expands, keeping your employees up to date with any changes.

 

The cost of your cybersecurity insurance depends on the size of your business, the level of sensitivity of your information, and the safety measures you already have installed. For startups, you have fewer employees, less data to expose, and minimal security protocols in comparison to your big business counterparts. Startups are among our clientele at Texas Systems Group, so we have experience in addressing your unique needs. We understand that your company may considerably grow in size in a short amount of time. That means your security needs to grow, too. Have a chat with us to discuss how we can give you the best managed IT services for startups.

Leave A Comment

You must be logged in to post a comment.