If you’re an owner or operator of a staffing firm, you likely understand the risk implications of managing client relations, upholding proper employment practices, and keeping your brick and mortar intact. However, have you considered the potential costs of a cyber-attack? As the largest growing threat in the world, cyber breaches are becoming more and more popular, raising legitimate concern for businesses of all types, and staffing firms are no exception. In this article, we’ll explore your potential for risk, the costs of protecting your firm, and how you can proactively protect your firm. In addition, equip your firm with a Staffing Agency Cyber Liability Insurance policy to optimize your safeguards and protect your bottom line.
Most small to mid-size businesses assume they are immune to these attacks since they aren’t large enough corporations for them to be attractive to hackers. However, this is not the case. Oftentimes, these smaller businesses don’t have the resources or money to secure their networks the way a corporation would, making them a prime target for hackers.
Chances are, if you store data in a cloud-based service or in your network, you’re at risk for a breach. It’s up to you to determine whether or not you’d be able to recover from such an attack and the real costs associated with it.
According to People 2.0, IBM Security recently reported that the average cost of a data breach has reached $4 million. That’s approximately $158 for every lost or stolen record. In highly regulated industries like healthcare, the cost of a breach can be as much as $355 per record. The current process of responding to a breach is extremely complex and time-consuming if not properly planned for; that fact has contributed to cybersecurity insurance becoming one of the fastest growing sectors in the insurance market, according to the PwC Global State of Information Security Survey 2016. PwC forecasts that the global cyber insurance market will reach $7.5 billion in annual sales by 2020 (a $5 billion dollar increase within a 5-year timeframe).
These costs include various fees associated with recovering from a breach, including reputational damage, litigation, public relations teams, and more.
In a previous post, we covered some of the ways you can protect your staffing firm from falling victim to a cyber attack. Here are some of the highlights:
- It’s essential to that a firewall and software that counteracts viruses, spyware and phishing attacks. These cyber criminals are looking for valuable data, so it’s important to create a barrier.
- Keep your browsers updated with the latest software at all times. Having the latest version of a software is key to avoiding hacks.
- Have your wireless network password protected because it’s very easy to get information from unprotected WiFi.
- For all installations on company computers, restrict software and set up administrative rights so that nothing can be downloaded without authorization from a higher-up.
About World Wide
At World Wide Specialty Programs, we understand that staffing firms are exposed to data breaches, identity fraud and all kinds of threats to security. Our Cyber Liability coverage will provide you with protection from corruption, threats, unauthorized access and network security attacks. For more information on how we can keep your business protected, call us today at (800) 245-9653.