When Sneha opened her boutique, she went all-in with technology through online payments and a sleek website. But just months later, a ransomware attack hit her hard! Her website was hijacked, payments froze, and her reputation suffered. Lesson learnt? No shop, no matter how tech-savvy, is safe from cyber risks. Does your shopkeeper insurance protect you from cyber risks?
Sneha is not a solo example. With more and more people, especially entrepreneurs, depending on digital platforms for their everyday operations, understanding cybersecurity meaning has become all the more essential. Today, cybersecurity insurance has become a must-have solution for all shopkeepers. Let us discuss more about how cybersecurity coverage is important for modern shops. Understand why bundling it with shopkeeper insurance is important, as standard shopkeeper insurance may not cover cyber risks.
Common Cyber Security Risks to Look Out
Now that you know the definition of cybersecurity, let us learn a little more. According to a report by the Think Tank DSCI or Data Security Council of India, an average of 761 cyberattacks per minute was recorded in India in 2024. Popular names like Burger Singh fast food chain and Hathway Internet Service provider were also some of the victims of cyber events.
Frequent incidents like these make it important to understand cybersecurity and common types of threats you should watch out for.
Ransomware
A ransomware attack can be simply understood as a malware threat. Using such malware, hackers prevent you from accessing your important documents, files, or networks. According to a news highlight by Business Standard, India is the 2nd highest target for ransomware events in the Asia Pacific.
Security Related Issues
Shopkeepers and other store owners also use a variety of technology, including surveillance cameras, facial recognition, and more, to prevent theft and other issues. However, there is also a risk associated with these security protocols. The concern revolves around the leak of customers’ biometric information collected via the technology. Such leaks can damage the organisation’s reputation and credibility and do much more.
Third-Party Exposure
Another common type of cybersecurity attack is via third-party exposure. It can be simply understood as the potential risks in the supply chain or business ecosystem coming via the third-party or exterior faces, including partners, vendors, and others involved in the business. Thus making it important for businesses to cross-check their vendors’ cybersecurity measures.
What Can Not Have Cyber Protection Cost You?
Even though now you’ve read about some common types of cybersecurity threats, it’s important to understand their pros and cons. Have you ever wondered what if a shop doesn’t have cyber protection? What can be the severe consequences or the cost of not having cybersecurity insurance? Well, let’s see.
Here are some common yet severe consequences of not having a robust cybersecurity system or insurance.
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Loss of Credibility and Trust
A cyber attack can have severe consequences like leak of customer’s personal information, preferences, and much more. This ultimately can take a toll on the business’s reputation and credibility while eroding the trust of its general audience.
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Loss of Data
By not having a reliable cybersecurity system, you expose your business to cyberattacks that may cause data loss and much more. The recovery of the lost data can also be a hassle and expensive process.
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Cost of Ransomware or Breach Attacks
When prey to breach attacks, businesses might be subjected to several kinds of costs, including legal expenses, fines, customer notifications, and so on. Furthermore, ransomware attacks can also cost you a hefty random cost of data recovery, etc.
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Higher Costs of Recovery
As mentioned, in case of no insurance, companies have to bear all the expenses of their attack on their own. This includes hiring experts, settling recovery, and much more.
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Disturbance in Workflow and Management
A cyber incident can not only disrupt your financial plans but can also take a toll on your daily business. This means they leave a negative impact on your business relationships, including your customers and partners.
What is Shopkeeper Insurance, and How Does it Help?
Cybersecurity insurance shields your business against cyber risks in the digital space. But what about your physical property? Do you not need to safeguard it as well? Well, you do, and here comes a reliable shopkeeper insurance policy. A shopkeeper insurance policy is a must for shops of all sizes and types, be it small, medium, family-owned, independent, high-risk, or more.
By having shopkeeper insurance, you ensure the protection of your physical property and shop content against events like theft, fire, etc. Therefore, a shopkeeper insurance policy gives you financial security or backs your business interest in case of any unpredicted risks or mishappenings.
Shopkeeper insurance can help you enjoy several benefits. Take a look.
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Money Protection in Shopkeeper Insurance
You get financial backing in the case of a money list within the insured premises or bank. This includes loss of money because of theft or any unforeseen circumstances.
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Protection of Property in Shopkeeper Insurance
With the shopkeeper insurance policy, you also get protection for your physical property, like the shop building or content damaged in physical events like earthquakes, fires, etc. Loss caused by events like burglary and and mechanical failure are also covered.
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Budget-friendly Shopkeeper Insurance
The best part is you can get insurance, which is quite cost-effective. You may choose the type of coverage you want and, accordingly, set your premiums and determine your shop insurance price.
Is Having Shopkeeper Insurance Enough?
As mentioned, having a shopkeeper insurance policy has a variety of benefits for shopkeepers. It offers you suitable coverage against any damage or loss caused to your business property or assets by physical or man-made factors. This can be anything, starting from fire and earthquake to theft and machinery breakdown.
While shopkeeper insurance policy is a must-have to shield the physical property of your business, it is equally important to have cybersecurity insurance. Cybersecurity insurance offers the same protection in a digital space. By combining the benefits of both these insurances, you ensure that your business is safeguarded against physical or online threats.
FAQs
What is cybersecurity insurance?
Cybersecurity insurance can be understood as a product offering financial security against loss caused by cyber-attacks, like breaches, ransomware attacks, hacking, and more.
Who is shopkeeper insurance for?
A shopkeeper’s insurance is equally beneficial for shops of all types and sizes. This includes kirana shops, supermarkets, convenience stores, and other types of small or medium sizes.
What is covered in shopkeeper insurance?
Shopkeeper insurance policy offers coverage against fire, burglary, breakdown of machinery, forging of cheques, signages, personal accident, employer’s liability, and so on. Events like loss from war, pollution, loss or drop in earnings, etc., are not covered by the policy.
