Gone are the days when phishing attempts were easy to identify and limited to only emails. While malicious messages are nothing new, they’re becoming more sophisticated and harder to pick out from legitimate business communications.  They are also coming at us through texts, social media chats and even phone calls.

A few simple actions with one of these messages can develop into a problem that spreads quickly across digital channels and devices, but there are things that you can do to defend against phishing attacks and resources that can help.

Vice President & Corporate Information Security Officer Jamie Neumaier knows a lot about tackling security threats. Jamie manages an information security team that works to ensure the people and systems at Erie Insurance stay as safe as possible. He answered questions about phishing scams targeting businesses and offered some useful security tips.

What is Phishing?

Phishing is a malicious activity in which criminals try to gain access to user’s information, data or devices. The goal is to get you to act without taking a moment to think, and when you do, the phishers may:

• Gain access to data and information, which they can exploit.
• Install malware on your system.
• Prompt you to reveal your personal financial information for purposes of stealing money or your identity.
• Access your email and send other malicious messages to your contacts, to exploit others.

Are Businesses Especially Vulnerable to Phishing Scams?

Yes. With more work being conducted digitally, businesses of all sizes are susceptible to attacks. Attackers also assume that small businesses do not spend a lot of money or effort on their security measures, making them a potentially easier target.

Phishers can easily find your contact information online and are counting on employees to at least open the email because you’re in a business of being responsive.

Phishing messages have also grown in sophistication, so it’s easy to be convinced to visit a malicious website or download an infected file that comes in a message that looks legitimate.  If the “threat actor” happens to call, they can be very convincing in having you follow their detailed instructions in providing them your valuable information or installing their malware.

How do You Spot a Phishing Attack?

Phishing messages that are poorly written, offer you large amounts of money or ask you for financial assistance have been common for a long time. Most of us know not to open, click or respond to these messages. As mentioned above, phishing attempts aren’t limited to emails either. Hackers now use phone numbers like your mobile number to call you and attempt to have you reveal sensitive information. They may send you text messages as well.

More recently, phishing messages are being designed to look like other emails that you might receive. They may appear to be from someone you trust like a bank, friend, software provider, retailer or vendor, but usually, the timing of the messages is unexpected.

For instance, one common technique is for a hacker to gain access to an email account through a phishing attempt, then access the account and reply to a real email conversation with a malicious link. So, when the recipient receives this email, it looks like a continuation of an earlier conversation, but it asks the recipient to download a document or enter their credentials.

How Can Phishing Attacks be Prevented?

In the course of day-to-day business between you, your employees, customers, and other consumers in general, know what you’re working on. If you receive a message, phone call or email that is unexpected or seems even just a little bit off, verify the validity of the message before taking action. Call the person who appears to have the message and ask if he or she sent it. If the answer is no, it’s a malicious message.

Other Things You Can Do:

1. Enable multi-factor authentication (MFA) services on as many things as you can, such as your email.  If you happen to fall for one of the phishers’ tricks, having this additional layer of protection significantly helps reduce their chances of taking over your email or other targeted accounts.
2. Keep your software and devices up to date. The latest updates for Microsoft Office products, operating systems, third-party applications, such as Adobe Reader and smartphone operating systems, contain patches that protect against the latest security issues.
3. Hover your cursor over a link in an email to show the URL. If it looks suspicious, don’t click on it.
4. Use a modern endpoint protection software on your devices. They’re often provided by common and well-known security brands such as McAfee and Norton. Microsoft also offers endpoint protection for Windows and other applications.
5. Always back up your data, so that you can get back to business as quickly as possible should you fall victim to an attack. Test your backup processes periodically to ensure they are working as expected.
6. Educate your employees on good cybersecurity practices like how to identify phishing attempts and spam messages.
7. Look at the extension on Microsoft Word attachments. Most users have updated their Microsoft products so that Word documents end with .docx. If you see the antiquated .doc extension, question it.

Also, be aware that if you’re hit with an attack, you may not know immediately, and the first indication may be that your customers receive an unexpected message from you. Unfortunately, a customer calling to verify something you sent (but didn’t intend to) could be when you know you’ve been affected.

If customers call asking if a message is legitimate, and after you confirm whether you sent that email, offer them the same advice you use in your own business operations.

• Did the customer expect to get that email?
• Does the link or URL direct them to a legitimate, expected website address?
• Does it ask them to open a suspicious document that they didn’t expect?
• Does it threaten to disable access unless the user ID and password are given?

Answering those questions can help you both determine whether the message is safe.

Phishing is continuously changing and evolving as perpetrators adopt new techniques and forms, so it’s essential to have a good security plan in place and watch out for emerging attacks to help protect your business. A well-trained team that knows how to spot a suspicious message can also be a great defense against phishing attacks by enabling them to respond to an attack instead of just reacting with a quick action.

The Right Protection for Your Business

Contact a trusted insurance advisor like an ERIE agent to learn about some of the smart and affordable ways to protect your business.

When you think about purchasing a business policy, you probably think about the protection it provides for a fire, windstorm or burglary.

Insurance that covers the cost to repair a damaged building is one thing, but what about the other implications of temporarily closing? Could your business financially weather the storm without regular income from customers while you rebuild?

This is why business interruption coverage (sometimes called business income coverage or income protection coverage) is important.

Business interruption coverage provides peace of mind, giving you time to focus on rebuilding rather than worrying about financial ruin in the face of unexpected setbacks. You’ve worked hard to build and grow your business. We can help you keep it safe.

What is business interruption coverage?

Business interruption coverage compensates you for lost income if your business is temporarily closed due to a covered loss under your business policy. Your insurance policy would pay for the loss of income you would experience due to a partial or total interruption.

What does business interruption insurance cover?

Business interruption insurance covers the revenue your business would have earned (based on your financial records) had the loss not occurred and helps cover other expenses that don’t stop—like utility bills, payroll, taxes and rent.

What if I need to temporarily relocate my business?

Experiencing a business loss is stressful enough. But then there’s the added issue of temporarily relocating while you rebuild. That could mean additional costs, including:

• Relocation expenses (like moving trucks) for temporary space to work
• Costs to equip and operate the temporary location
• Overtime pay to employees in order to get the temporary location up and running

With business interruption and extra expense coverage, you can relax—your policy can pay for necessary extra expenses that it takes to help keep things running smoothly if you need to temporarily relocate your business due to a covered loss.

If you run a small business, you’re well aware of how many things can go wrong. Even if they haven’t happened to you personally, you’ve probably heard the horror stories. Whether accidental customer injuries, legal action from competitors or any of a thousand other heartburn-inducing scenarios, the risks and pitfalls of running even a very small enterprise can keep you up at night.

One of the most effective ways to protect your business from potential financial loss is with general liability insurance. Let’s explore how this kind of coverage helps keep small business owners confidently on track to success.

What Is General Liability Insurance

Also known as commercial general liability insurance, general liability insurance protects businesses from financial loss arising from claims of damage or injury caused directly or indirectly by your business operations. It can help cover the costs of legal fees, medical expenses and lawsuit damages from incidents that are not intentional in origin.

General liability insurance typically covers several key areas, including:

Bodily Injury

In the unfortunate event that a customer is injured on your business premises or as a result of your business activity, general liability insurance can help cover the costs of damages, medical expenses and legal fees. For example, a customer could be struck by ice falling from a business’s roof.

Property Damage

If a customer or client’s property is damaged as a result of your business activity, general liability insurance can help with the costs of repairs or replacement. For example, if you own a landscaping business and one of your employees accidentally damages a customer’s driveway property while providing service.

Personal Injury

Personal injury of a nonphysical nature to a third party—such as false advertising, libel or slander that results in financial loss—can be covered by general liability insurance. For example, a customer could claim that a business’s advertising materials contain misleading claims that resulted in the customer experiencing financial loss.

Advertising Injury

Copyright infringement or violation of intellectual property rights related to your business’s advertising or promotional materials can also be covered by general liability insurance. For example, an advertisement might accidentally include copyrighted material for which the owner seeks compensation.

Without adequate insurance coverage, a business could be severely impaired—or even bankrupted—when held financially responsible for harm arising from occurrences such as these.

What Coverage Does a Small Business Need?

As you can see, selecting the right general liability insurance can be a game changer for a small business. The amount of coverage your business needs will depend on several factors, including the size of your business, the industry you’re in and the specific risks your business faces.

But let’s not forget: There are other types of liability insurance, and these coverages can make a big difference when you need it. These include:

Umbrella Insurance

This type of policy provides additional liability coverage beyond the limits of your general liability policy.

Cyber Insurance

This covers financial losses resulting from data breaches, cyberattacks and other digital threats. In the age of advanced digital hazards, this kind of insurance is increasingly popular among business owners eager to protect themselves from rapidly evolving threats.

Product Liability Insurance

This covers claims of injury or property damage resulting from a defective product your business sells or manufactures.

Employment Practices Liability Coverage

An employment practices liability policy helps protect business owners against claims from a customer, client, or vendor alleging discrimination, wrongful termination, harassment (including sexual harassment), or other wrongful employment acts.

Most business owners have insurance to protect buildings, vehicles and other important assets, but few consider insuring their greatest asset: their people.

How would your business manage after the death of, say, your lead salesperson, your sole design engineer or your experienced plant manager? How long would it take to fill that position or get someone else up to speed on their projects? How much damage would the loss of a key person cost you financially?

Key Person coverage is a type of life insurance designed to help your business recover from the loss of a person whose role is critical to your success. It’s particularly beneficial to small business owners.

“Many small businesses are started by one or two people and others are added over time to fill skill gaps,” said Derek Holmes, life insurance product manager at Erie Insurance. “Often, the key employees have different strengths than the owner, so replacing those skills and maintaining productivity after a sudden death puts a lot of pressure on the business owner and the business overall. Key Person life insurance can offer some relief.”

Imagine Your Business Without …

“Key persons” can be anyone in your business whose roles, knowledge or performance have a direct effect on the bottom line of the business.

To understand the magnitude of the loss of one of your key people, try this exercise:

• Make a roster of the leaders of each of your company’s departments – sales, operations, finance, information technology, engineering, etc.
• Document each person’s financial impact on your company’s monthly and annual revenue. For some roles, like sales, the financial contributions are easy to track; for others, think in terms of the financial effects of efficiency, intellectual property and other value they add. Assign dollar figures to these contributions.
• Capture the estimated time it would take to find a replacement for that position and train them to an acceptable level of performance. Is it days, weeks, months or years? Time is money.

By quantifying the value that these leaders bring to your organization, you will gain an objective view of the risks that exist and the extent of Key Person coverage you may want to consider.

Funds from a Key Person claim can help reduce some of the financial burden of a personnel loss. If the business fails as a result of the death, the Key Person funds can be used to cover other employee severance, pay outstanding bills or provide a buffer as the business owner transitions to a new endeavor.

Does Key Person Coverage Come ‘Standard?’

Because Key Person coverage is a form of life insurance, business owners have options.

Term insurance might be ideal to cover a key person who is older and may be closer to retirement. A 10-year term policy may provide adequate coverage as you work to identify a successor.

For younger key people, you may want to consider whole life insurance, which can extend for multiple decades and sometimes at higher benefit levels.

By talking to an Erie Insurance agent, you may discover additional combinations to match your business needs, such as Guaranteed Insurability Option riders, which allows for purchase of additional coverage regardless of changes in their health.

“During your next commercial insurance review with your ERIE agent, talk about business continuation and Key Person coverage,” said Derek. “You’ve worked hard to build your business – it’s important to take the necessary steps to have insurance in place to keep it going.”

Enjoy the feeling of a future that’s well-planned and protected. Speak with a local ERIE agent today to learn more about Key Person coverage and other business continuation options.