facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog external search brokercheck brokercheck Play Pause
Retired Military Finances: Cyber Insurance Thumbnail

Retired Military Finances: Cyber Insurance

Insurance Managing Your Finances

If you've retired from the military and started a business, cyber security should be a concern. A data breach can damage more than just your small-business computer system – it also can damage your reputation and put your customers and/or employees at risk. That's why cyber insurance can be a smart precaution for any size business.

Ask yourself the following questions:

  • Are your computers (and don't act like you're still doing payroll on an old 1978 calculator that's the size of a skateboard) hooked up to the Internet?
  • Do you have financial data with banks that do online banking?
  • Do you store customers' personal data on computers at your business?

Heck, do you service or sell cars that hook up to the Internet? (You'd be surprised how many new ones do!)

If the answer is yes to any of these, you are exposed to cybercrimes. Yeah, that's a link to an FBI website.

So, let's see what risks you're exposed to and then talk about what cyber liability insurance can do to help you recover if something does happen.

Attacks on Your Business

There are several types of attacks that can hit any business.

Ransomware – This is an attack in which intruders get into your system and encrypt (or lock away behind a code) data that you need to run your business or personal life. These intruders typically ask for money in exchange for giving your data back, thus ransoming it. Some estimates say that there are over 4,000 attacks like this per day.

Denial-of-Service – This is an attack in which intruders overwhelm your system or website, causing it to crash repeatedly.

Malware – This is an attack in which a program is loaded onto your system without your knowledge, allowing intruders to steal information, gain access to systems, damage systems, or spread viruses.

Phishing – This is an attack in which an email contains an attachment or link that will download harmful programs onto your system.

Drive-by – This kind of attack hides on a questionable website and loads harmful programs onto any unprotected computer that accesses it.

There are many, many more types of cyberattacks, but the aforementioned attacks are common ways through which cybercriminals can slip between the cracks and gain access to your systems.

Now, let's look at what you have that they want.

What is Stolen?

Hackers, intruders, thieves—whatever you want to call them, they are looking for something valuable. There are several kinds of information they are looking for, and the most common are:

  • Customer Personal Records – Such as names, addresses, Social Security numbers, or anything else they can sell to identity thieves.
  • Financial Records – So they can take money directly from or charge items to your business.
  • Security Information – This includes things like passwords, links, and other ways to access your business partners. Intruders may be looking not just for you but also for the big companies you buy from and do business with.

The problem is that this isn't a bank heist. Thieves don't just sneak in, steal cash, and leave, taking only one thing. They take information and money at the same time.

This breach of information leaves you wide open to lawsuits and other penalties because it is a business's responsibility to protect its data and the data of its customers.

How Secure Are You?

Sure, you're connected to the Internet and you have Wi-Fi for your customers. You take pictures of things on your phone and email them to your business. No big deal, right?

You set everything up the way the guy at the cable company told you. The box with the blinking lights has a “firewall.” Isn't that what they said?

It's their job to make sure you're safe, right?

Wrong.

Unfortunately, the responsibility falls on you. You have to make sure that your computers, WiFi networks, and passwords are all safe from people who want to steal from you and your customers.

The simple fact of the matter is that the law holds you accountable for your Internet and network safety.

But what happens if you are attacked? What if you find yourself at the end of a huge loss? Or a massive lawsuit?

That's why you get cyber liability insurance.

How Cyber Liability Protects You

Cyber liability insurance protects you with a whole range of coverages that can prevent you from going out of business after a major data breach.

It can reimburse you for direct financial losses, pay for legal costs if you are sued, cover regulatory fines if you are found guilty of not protecting your information, and more.

It can even help cover your business costs if you are disrupted and have to shut down due to an attack, such as a DoS or ransomware attack.

Just like the general liability insurance policy, cyber liability is a powerful, flexible piece of protection that can do so many things to keep you in business and get you back to where you were before an accident.

It's a new era, and the old protections of the past aren't going to cut it. It's time to get with the times.

Military Finances are Different

The good news is you're not a novice when it comes to cyber-security. You may be a novice at managing your finances in the civilian world. And not every advisor will understand the unique benefits available to a retired Senior Military Officer or NCO. That is why we think you should work with a financial planner/advisor that has been working with people like you for more than a decade. If you'd like to find out how we do things, use the button below to schedule a free initial consultation.

If you found this article useful, you might like the following blog posts:

Military Finances 101: Liability Insurance


Retired Military Finances 301: Succeeding at Business Succession


Retired Military Finances 401: Preparing For a Business Valuation



This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Disclaimer
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by C.L. Sheldon & Company, LLC ), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. C.L. Sheldon & Company, LLC does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to C.L. Sheldon & Company, LLC website or incorporated herein, and C.L. Sheldon & Company, LLC takes no responsibility therefore. All such information is provided solely for convenience, educational, and informational purposes only and all users thereof should be guided accordingly. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from C.L. Sheldon & Company, LLC . To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. C.L. Sheldon & Company, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the C.L. Sheldon & Company, LLC ’s current written disclosure statement discussing our advisory services and fees is available for review upon request. DISCLAIMER OF TAX ADVICE: Any discussion contained herein cannot be considered to be tax advice. Actual tax advice would require a detailed and careful analysis of the facts and applicable law, which we expect would be time consuming and costly. We have not made and have not been asked to make that type of analysis in connection with any advice given in this blog post. As a result, we are required to advise you that any Federal tax advice rendered in this blog is not intended or written to be used and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS. In the event you would like us to perform the type of analysis that is necessary for us to provide an opinion, that does not require the above disclaimer, as always, please feel free to contact us.