Insurance and Security

Three basic ways to protect your business

Follow these tips to ensure you have the right processes and insurance coverage in place.

Published: October 19, 2015
Updated: February 22, 2017

What precautions can you take to protect your business, from technology to finances? Here are some ways you can take an active approach in protecting what you have worked hard to build:

1. Secure your network and computers

Fact: 62% of cyber-breach victims are small to midsized businesses, which are at the greatest risk for an attack.1


  1. Change your password and review your IT security when an employee leaves.
  2. Install and periodically update safety software to protect your network, servers, and online applications.
  3. Restrict access to sensitive data to only those who need it, such as your accountant.

Insurance that can help protect:

  • Cyber liability insurance provides coverage for losses resulting from security, privacy, content, and regulatory action issues.

  • Data breach insurance provides coverage for lost business income, notification costs, privacy and monitoring services, and crisis management.

2. Put formal fraud controls and processes in place

Facts: Small businesses are significantly more likely than their larger counterparts to neglect instituting basic anti-fraud controls that could save them from costly losses.

  • 53% of thefts were committed by employees in senior roles.2

  • 43% of thefts were committed by non-management employees. 2


  1. Create a formal fraud policy to let employees know that you're on the lookout for suspicious activity.
  2. Access bank statements online, and use a strong password for logging in.
  3. Check payroll reports to compare canceled checks to invoices.
  4. Personally sign all checks, create policies for credit purchases, and set spending limits on accounts.

Insurance that can help protect:

  • Employee dishonesty insurance provides coverage if you suffer a financial loss due to employee theft.

  • Forgery insurance provides coverage for losses you incur if someone forges your name.

3. Create a business continuity plan in case the unexpected occurs

Fact: Business interruption and supply interruption rank as top risks for businesses.3


  1. Develop a plan to notify employees of important information during a disaster, as well as one for letting customers and supply chains know if you must temporarily move to another location.

  2. Identify backup supply chains to use when and if your primary suppliers are not available.

  3. Share your plan with employees, and keep separate copies of valuable documents. You don't want a catastrophe to destroy client information or insurance documentation that you might need for a claim.

Insurance that can help protect:

  • Business interruption service may reimburse you for lost income if your business is forced to close temporarily.

  • Extra expense coverage may reimburse you for costs incurred to set up at another location, including any additional cost above normal costs to get your business back up and running.

Get help finding the right insurance plan

Insurance can't physically protect you from the unexpected, but it may help in keeping your finances stable if you have the proper coverage. Talk to your insurance agent, or contact Wells Fargo Insurance for more information.


1 "Small, mid-sized businesses hit by 62% of all cyber attacks." PropertyCasualty360 (2015)

2 "Survey Finds Median Employee Theft Loss of $280,000 for US Organizations." Security Magazine (2015) 

3 "Allianz Risk Barometer 2015: Businesses exposed to increasing number of disruptive scenarios." Allianz (2015)