Cybersecurity and Commercial Insurance | A Wake-Up Call for Queens Businesses

1. Cybersecurity and Commercial Insurance Cybersecurity and Commercial Insurance A WAKE-UP CALL FOR QUEENS BUSINESSES Introduction In today’s digitally driven environment, cybersecurity threats have become a daily concern for businesses of all sizes. Yet many small and medium-sized enterprises in Queens continue to underestimate their exposure to these risks. From neighborhood co?ee shops to local service providers, businesses rely heavily on digital tools—yet overlook the need for cybersecurity safeguards and cyber-specific insurance coverage. This blog explores the growing cyber threats facing Queens businesses and why pairing cybersecurity with appropriate commercial insurance is no longer optional. Why Cybersecurity is No Longer Optional for Queens Businesses The belief that only large corporations are targeted by cybercriminals is outdated. In fact, small businesses are often more appealing targets precisely because they tend to lack robust cybersecurity infrastructure. For Queens-based business owners, digital operations have become essential—from using cloud-based accounting software to processing payments online. However, even a single data breach or phishing scam could result in severe operational and financial disruption. Given how interconnected modern businesses are, cybersecurity must now be treated as an everyday business essential—just like utilities or rent. What is Cyber Liability Insurance? Cyber liability insurance is a specific type of coverage designed to protect businesses from the financial and legal fallout of cyber incidents. Unlike standard commercial policies that focus on property damage or general liability, cyber insurance is tailored to address data breaches, ransomware, cyber extortion, and business interruption caused by cyberattacks. Typically, this type of insurance o?ers two categories of protection. First-party coverage reimburses the business owner for direct losses such as revenue loss, data recovery, customer notification, and public relations support. Third-party coverage, on the other hand, protects the business against claims from a?ected customers, clients, or regulatory bodies. Most importantly, this protection is not typically included in traditional commercial insurance policies, meaning business owners must request it separately.

2. Real Costs of a Cyberattack: Could Your Business Survive It? The financial impact of a cyberattack can be devastating. Industry reports consistently show that a large percentage of small businesses do not recover from a major breach. In the U.S., the average cost of a cyberattack for a small business can exceed $100,000. These expenses can stem from IT recovery, legal fees, regulatory fines, and even lost sales due to damaged reputation. For a business operating in Queens—where operational costs and competition are already high—absorbing such a financial hit without insurance could lead to permanent closure. Commercial insurance in Queens can provide the necessary bu?er that gives a business a chance to recover and rebuild. Common Cyber Risks Faced by Queens Businesses Businesses in Queens face a broad range of cybersecurity threats, regardless of their industry or size. Phishing emails, in which employees are tricked into clicking malicious links or revealing sensitive information, are alarmingly common. Ransomware is another significant risk, where attackers lock a company’s data and demand payment for its return. Many businesses also risk customer data breaches due to poorly secured payment systems or weak password protocols. Even relying on unsecured Wi-Fi networks or outdated software can expose a company to serious risks. And while some threats come from outside, insider actions—whether intentional or accidental—can be just as damaging. These vulnerabilities highlight the importance of strong internal policies as well as external protection through insurance. How Commercial Insurance Can (and Can’t) Help

3. A standard commercial insurance policy may provide coverage for physical theft or general liability but will likely fall short when it comes to digital threats. Without specific cyber liability coverage, a business will not be compensated for data recovery, ransom payments, customer notification costs, or regulatory penalties. Many business owners mistakenly believe their existing insurance covers all risks, only to discover otherwise during a crisis. Including cyber insurance in your commercial policy ensures that when a digital emergency arises, your business has the resources to respond e?ectively and resume operations quickly. It’s a crucial addition, especially for businesses that handle customer data, run e-commerce operations, or rely on digital systems for daily functions. Tips to Strengthen Cybersecurity Before It’s Too Late While insurance is essential, prevention remains the best defense. Business owners should begin by educating their employees about cyber hygiene—simple habits such as avoiding suspicious emails and using secure passwords can prevent many attacks. Implementing multi-factor authentication, regularly updating software, and backing up critical data can significantly reduce vulnerability. Periodic security assessments from professionals can help identify weak spots before attackers do. A proactive approach to cybersecurity, supported by the right insurance coverage, ensures that businesses are both protected and prepared. Conclusion: Don’t Wait for a Breach to Get Protected Cyber threats are not going away—they are evolving and becoming more sophisticated every day. For businesses in Queens, the combination of digital dependency and limited security resources makes them particularly vulnerable. Now is the time to take a hard look at your current cybersecurity posture and your insurance coverage. Don’t wait for a breach to expose your weaknesses. Protect your customers, your data, and your livelihood with the right mix of cybersecurity measures and commercial insurance tailored to modern threats. IGM Brokerage Corp 2844 Westchester Avenue, Bronx, NY 10461 (718) 931-4900 insurance@igmbrokerage.com www.igmbrokerage.com/