5 Things Small Businesses Need to Know About Cyber Attacks

Small business owners take a relatively relaxed approach when considering their cybersecurity. However, this laid-back method of preventing cyber attacks can put them in a difficult situation. When asked about their cybersecurity efforts, most small businesses reported being unconcerned about a data breach, believing themselves an unlikely target for cyber criminals. Unfortunately, this casual attitude toward cyber threats is exactly what puts them at risk.

When companies don’t believe they are credible targets for cyber criminals, they are less likely to invest in cybersecurity software. Their limited defenses make them an easy target. While they may not possess as much sensitive data as a large company, even a few dozen credit cards can be a lucrative prize to a hacker.

Small Business Cybersecurity Facts

The following are some of the trending statistics regarding small businesses and cybersecurity:

  1. 84% of small business owners don’t feel at risk for a data breach
  2. 73% of small business owners don’t believe that have vulnerable customer data
  3. 73% of small businesses have some cybersecurity protocols in place; however, 64% manage their own IT
  4. 61% of cybersecurity incidents happen to small business
  5. 33% of small businesses invest in cyber liability insurance

What makes the above numbers so concerning is that even though small business owners are taking steps to protect themselves, they’re relying on their own know-how to do so. Most small business owners wear many hats during the startup phase, meaning they are the accountant, the marketing manager, the cybersecurity specialist, and more.

When spread that thin, there is no way to perform each job to the fullest. Something has to give, and, unless the owner has a background in IT, cybersecurity is not likely to be their strong suit. Compounding the problem, the majority of small businesses neglect to invest in cybersecurity insurance. Inadequate security measures combined with unacceptable exposure to risk can lead to financial crises that small businesses can’t withstand.

How to Protect Small Businesses from Hackers

Small business owners can take several steps to protect their enterprise from cyber attacks. Some recommendations include:

  • Implementing and updating security software often.
  • Only using secure point-of-sale (POS) systems
  • Providing employee training on how to recognize spam, malware, and phishing scams
  • Employing an IT expert
  • Purchasing cybersecurity insurance

While most of the above points focus on prevention, businesses have to formulate a plan for dealing with a successful cybersecurity breach. This means investing in cybersecurity insurance that suits their risk profile. The Reilly Group understands that no insurance policy is one-size-fits-all. Contact us to learn more about how we can help protect your small business.

Why Do Employees Make Bad Decisions at Open Enrollment?

Open enrollment is a stressful time for employees and human resources. With the wealth of information available, it can be frustrating to see employees make poor decisions regarding their health care. Every employee has unique needs and there is often a plan that corresponds to their specific health situations. Unfortunately, 80% of Americans pick a health care plan that is incongruous with their health needs.

The reasons for this are obvious when considering the statistics:

  • 83% of employees spend less than an hour researching their options for open enrollment
  • 92% select the same benefits options as the year before
  • A meager 4% know the meaning of health care terminology such as deductible, coinsure, and out-of-pocket maximum

Considering open enrollment is so important, it seems downright irresponsible for employees to be so flippant about their health care options. However, it’s not a lack of care that drives their poor decision making; it’s stress and intimidation. The multitude of options and the confusing terms overwhelm employees so they default to whatever option looks most similar to what they had the year before.

The problem with mismatching benefits with actual needs is that employees end up over- or under-insured. Excessive insurance can lead employees to seek unnecessary tests and procedures that inflate claims and increase the cost of healthcare for the entire organization. Limited insurance can bankrupt an employee if they fall ill and need more than basic care. They may also avoid seeking care altogether and try to weather an illness without assistance. This can lead to prolonged illness, absenteeism, and reduced workplace morale.

How to Fight Mismatched Benefits

Human Resources can drastically improve open enrollment outcomes by following the lead of industry titans like Amazon and Netflix. While healthcare is worlds apart from ecommerce or media services, there is an appeal of having a recommended for you option. Amazon and Netflix do this well and, as a result, see increased engagement. If HR took this approach to open enrollment, they could help employees shop for benefits that best match their needs.

Provide a simple survey to learn an employee’s most pressing needs and then make recommendations from there. Providing employees with a few options that correspond to their health situation is much less daunting than presenting them with an overwhelming number of plans and benefits offerings. To learn more about improving your employee benefits program, contact the experts at The Reilly Company.