Accountants: Are You Protected Against Cyber Risk?

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Accountants: Are You Protected Against Cyber Risk? on avanteinsurance.com

Don’t balk: The threat is real

Cyber risk: You probably haven’t given it a whole lot of thought. After all, you’re an accountant who owns your own firm or works as an independent contractor. And although you’re busy, it’s not like you’re Target (70 million records hacked), JP Morgan Chase (76 million records hacked), or even The Home Depot (with a mere 56 million records hacked). So, while these attacks prove that there is danger operating in the cyber world, you may be thinking that it really doesn’t affect you and your customers.

But the unfortunate reality is, whether you know it or not, you’re just as much at risk as any other organization in business today, big or small. In fact, experts agree that no one—not individuals, businesses, or the government—is immune to this danger.

You’re more vulnerable than you realize

As an accountant, you’re privy to loads of very personal, confidential information. Data that, if put into the wrong hands, could be very damaging to your clients and your company. And because of this, your records are particularly appealing to hackers and thieves. That’s why how and where you store your client’s information is critical.

What precautions have you taken?

If you have been thinking about the possibility of a data breach, it’s likely you’ve invested in some precautions like backups and other solutions that offer increased security. And while these are viable ways to decrease your risk, hackers and their unsavory methods evolve as technology becomes more and more advanced. Those companies which don’t properly manage and secure their data are risking it—big time. Because breaches don’t just mean loss of data, they also translate into loss of trust and revenue that could ultimately result in having to close the doors.

How to protect yourself

After you’ve encrypted your devices, invested in offsite cloud servers with the highest level of redundancy and security, or have taken other security measures, the fate of your data rests in the hope that you’ve done enough. But the “what if?” still exists, and it’s something that you can and need to address.

As an accountant, your clients depend on you and trust that you have their back, both when you do their taxes and how and where you keep their personal information. That being said, if a breach still happens, it’s essential to your livelihood to have insurance.

Cyber Liability Insurance

Cyber liability insurance can and will provide the protection you need in the event that your company experiences a breach. This special insurance solution was designed to address the ever-changing needs of our technology-driven society. Here’s a look at what it covers:

First-party Cyber Liability Coverage:

If your company is hacked and information is lost or stolen, this policy will help with recovery throughout the ordeal. It covers the costs of an investigation to determine the cause of the breach, PR efforts to rebuild trust, efforts to reacquire lost revenue, and other necessary actions to remedy your company’s situation

Third-Party Cyber Liability Coverage:

This policy covers the cost of any potential lawsuits that you may face as a result of the breach. It also reimburses you for any payments, fees or fines, money spent notifying clients, and other related expenses that you may incur.

The threat of a cyber attack is as real for you as it is for any other company or independent businessperson. In fact, hackers often target accountants and other small financial businesses because they’re betting on the belief that you may not have the level of security that the large corporations do. Don’t be their next victim.

Be sure that you take the right steps to protect your data. Secure information properly, only give access to the people in your company who need it, be aware of phishing scams and other shady attempts to gain access to your records, and invest in cyber liability insurance.

Talk to us about the right insurance solutions for your accounting practice or small business. We have a wide array of carriers and products and will customize a policy that ensures you have the appropriate coverage to meet your specific needs.