Is Your Network Protected? 5 Reasons You Need Network Security Insurance

Small and medium sized businesses (“SMBs”) operate on the leanest of budgets, and SMB owners typically scrutinize every expenditure, regardless of how small it may be. This tendency can lead an SMB to overlook or ignore network cybersecurity if, for example, the SMB has installed a simple network firewall or antivirus software on its computers and mobile devices. SMBs are exposed to network data breach risks that are equal to or greater than the risks faced by larger companies with big cybersecurity budgets.

Those risks will never be eliminated, but SMBs can protect themselves from them with network cybersecurity insurance. SMB industry experts generally point to at least five reasons why SMBs need this insurance.

  1. SMB computer networks are a prime target for hackers.

SMBs typically store and maintain significant amounts of data about their customers and clients, but install fewer protections over that data to keep it away from hackers. This places SMBs directly in the hacker “sweet spot”. More sophisticated hackers might use an SMB’s less secure network as a stepping stone to launch a cyberattack against a larger company that is one of the SMB’s trading partners. As long as SMBs continue to underestimate their exposure to cyberattacks, hackers will target their networks for the rich mother lode of information it can provide.

  1. A network breach can put an SMB out of business.

Even apart from any damages and liabilities that an SMB might incur as a result of a network security breach, an SMB can face ruinous litigation costs following a breach. SMBs can face legal defense bills in the tens of thousands of dollars well before any resolution or settlement of network breach liability claims. Network cybersecurity insurance can cover some or all of these defense costs and allow an SMB to focus its money and energy on managing the SMB and recovering from the breach.

  1. Customers and clients are more likely to do business with an SMB that maintains network security insurance.

Cyberattacks and data losses can have a detrimental impact on customer loyalty. Both large and small businesses across every industry sector know that they cannot prevent every possible cyberattack. The best they can do is to provide mechanisms to help them and their customers recover from a data breach and to protect personal and financial data that is exposed in an attack. Customers will be more comfortable and will be more likely to remain loyal to an SMB when the SMB maintains network security insurance that makes compensation available if and when a cyberattack occurs.

  1. Network security insurance helps an SMB to embed cybersecurity awareness among its employees.

SMB employees usually assume a variety of roles within the company. Performing many different tasks can obscure an employee’s individual cybersecurity obligations. An SMB that procures network security insurance will typically work with the cybersecurity insurer to identify critical data assets and to create awareness among employees about basic data security practices. This will elevate employee awareness of the cybersecurity risks that the SMB is facing, leading to better cybersecurity practices among those employees.

  1. Network security insurance will help an SMB to formulate an objective response strategy to a data breach.

Preparation is the key to surviving a cyberattack. Most SMB’s have little or no strategy with respect to how they would respond to a data breach, ransomware attack, or other successful hack of their internal networks. Network security insurance providers can work with their clients to develop a mechanism for reacting and stopping a cyberattack. Those strategies will include, for example, quickly communicating the occurrence of the attack to affected parties, offering identity protection services to customers whose data might have been compromised, and improving network security to limit or prevent future attacks.

 

The 5 Differences between Debt Consolidation and Debt Settlement

In your search for debt relief options, you may have come across these two confusing debt relief terms and strategies. Debt consolidation and debt settlement are two efficient debt relief strategies that will alleviate your debt burden. They have the following differential elements:

  1. Definition

Debt consolidation involves taking up a loan to repay your multiple loans. You will remain with one lender whom you can negotiate payments with.

Debt settlement on the other hand involves an agreement between you and your lender to settle an outstanding debt for less than the amount currently owed.

  1. Qualification

Do you qualify for debt consolidation? You qualify for debt consolidation if:

  • You have multiple high interest rate loans,
  • You are unable to make the minimum monthly payments, and if
  • You struggle organizing the bills therefore delaying some payments.

Once the validity of these reasons is determined, then you can get debt consolidation.

You qualify for the debt settlement plan if:

  • you are behind on most of your payments.
  • You have a less than average credit score that will lead to denial of a debt consolidation plan.
  • You have some money set aside for settlement of your dues.
  1. Process

Debt consolidation involves grouping your multiple debts and the monthly interests or fees in one place to simplify payments. For example, if you have three credit card loans charged interest at 12%, 16%, and 24%, you may consolidate these loans into one loan with an interest rate of between 10 and 16%. This means that you will pay less monthly. Go through debt consolidation reviews to find the best consolidation firm.

Settlement of your debt is done after it is ascertained that your application for consolidation will not be approved and you are already having trouble repaying your debt. Therefore, the best way out of the nightmare would be making a deal with your creditor or creditors on one repayment or settlement. This can be done in two ways:

Option 1 – The DIY debt settlement

The settlement process will involve your lender settling for an amount lower than what is owed to them. You will have to negotiate with your lender. Since the lender will have noted your repayment problems, they will most likely make the deal that ensures that they recoup as much of their owed funds as possible.

Before the negotiations, you should combine all your money and save up as much as you can to settle the debt. Once you have the resources, talk to your lender, explaining your hardships in a polite, logical, and calm way. The result is unpredictable, but it is worth a try.

Option 2 – The debt settlement company

If the DIY approach fails, then you will have to talk to a credit counselor in a debt settlement company to assist with debt settlement negotiations. They will negotiate a deal or deals with your lender(s) then. Once they agree, you will have to pay the debt settlement company monthly instead of your lender. The monthly payments are put into escrow and after saving up some money, the lender is contacted and paid or they renegotiate.

  1. Credit Score

Debt consolidation isn’t an option when your credit score is low and debt settlement is an option for your low credit score.

  1. Types of loans covered

Consolidation works for secured and unsecured loans but settlement only works for unsecured loans. Student loans can’t be settled.

In conclusion, both methods involve getting money to settle debts and in most cases, you will have to file for bankruptcy when both options fail. This will affect your credit score in the same way settlement does or worse. Since both solutions are drastic and will negatively affect your finances, you should consider evaluating your finances. Set up and stick to your budgets. Changing your lifestyle is your first step to managing debt.

Let debt consolidation and settlement be your last reasonable options for investments.