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Companies Need Reliable Business Insurance in Michigan

Posted on: Friday, October 3rd, 2014

The continuous development of technology has made it possible for people to easily perform daily tasks and to gain a better quality of life. The innovations introduced in the past ten years alone, such as smartphones and superior Internet connection, have sparked a huge public demand for reliable products and services from existing and startup tech firms. However, these types of businesses, as well as many others, face their own set of significant challenges, such as the ones discussed by Bloomberg Businessweek contributor Karen E. Klein:

Insurance for When You Get Hacked

In a survey (pdf) of 800 members last year, the National Small Business Association reported that almost half had experienced security breaches, with nearly 60 percent of those incidents resulting in business interruption. The average cost associated with cleaning up the attacks approached $8,700.

Along with the cost of notifying customers (a legal requirement) that their credit card or other data have been stolen, there can be a serious cost to your company’s reputation in the wake of an attack, says Andrew Bagrin, chief executive and founder of cybersecurity company My Digital Shield. “More than one-third of patrons say they wouldn’t return to a business that experienced a breach. Unfortunately, few businesses recognize and understand the impact of a breach until it’s too late,” he says.

The threats posed by hacking and other cyber-crimes are serious, potentially bringing about lasting consequences to businesses. Most companies believe they already have the necessary hardware and software to protect themselves from these negative effects, but Home Depot and Target are examples that all businesses. Large or small are at risk. In light of this, companies can purchase comprehensive business insurance in Michigan which will enable them to transfer risks of financial losses caused by cyber-crimes to an insurance company. Having sufficient coverage can mean the availability of immediate funds which can be used to make up for potential losses and to implement necessary solutions.

Experienced MI business insurance agencies such as Allied Insurance Managers, Inc. can help companies get the protection and coverage that they need to ensure smooth business operations despite setbacks. It is recommended that all startup businesses, get the appropriate cyber insurance coverage to protect themselves from data security breaches and hacking.

(Source: Insurance for When You Get Hacked, Bloomberg Businessweek, August 28, 2014)

Paul W. Kosmal

Senior Account Executive at Allied Insurance Managers, Inc.
Paul received a BBA from Western Michigan University, majoring in their renowned Sales and Business Marketing Program. Paul has also attained three prestigious Insurance Designations, Certified Insurance Counselor (CIC), Licensed Insurance Counselor (LIC) and Certified Professional Insurance Agent (CPIA)
Allied Insurance Managers, INC.