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Professional liability insurance important for small firms seeking cybercrime protection

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The Financial Times recently referenced data from the Federal Deposit Insurance Corporation which showed cyberthieves have cost U.S. companies and their banks more than $15 billion in the past five years.

One victim of cybercrime was Experi-Metal, a small parts supplier for the U.S. automotive industry. After sending sensitive information over the internet, the company suffered a cybertheft and lost $560,000 from its main account.

Covering these large losses is easier with professional liability insurance, which often allows companies to recover money lost as a result of cybercrime. This coverage may be especially important for small- and mid-sized businesses, as the Financial Times reported SMBs are likely to be increasingly targeted for cybercrime, given that they generally have less elaborate security protocols in place than large enterprises.

Many experts connected with the Experi-Metal case believe that if better security software was installed by the company, the losses could have been avoided. This is why American regulatory authorities and law enforcement agencies are making it a point to emphasize the importance of security software, said the website.

Small businesses looking for cutting-edge security software might consider companies that offer cloud-based security for web and email, according to Computer Business Review.

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