While cyber breaches at Target and Ebay make all the headlines, many entrepreneurs and small business owners don’t realize that they are just as much at risk for cyberattacks as larger, big-name corporations. According to a 2017 report:
- 50% of small businesses in the U.S. have been breached in the past 12 months.
- 43% of cyberattacks target small business.
So, why exactly do small businesses make such appealing targets for hackers?
Put simply, small businesses owners underestimate their risk level, with 82% claiming they are not targets for attacks because they feel they don’t have anything worth stealing.
It should come as no surprise then that only 14% of small business owners rate their ability to mitigate cyber risks, vulnerabilities, and attacks as highly effective, according to the same report.
The stakes, unfortunately, are significantly higher than they realize:
- 60% of small companies go out of business within six months of a cyberattack.
- In the aftermath of breaches, small businesses spent an average of $880,000 because of damage or theft of IT assets. The disruption to normal operations the breach caused cost them an average of nearly $1 million.
- Most general liability insurance policies do not cover the costs of a security breach.
Since a general liability policy will not help with recouping losses or legal fees associated with a data breach, a separate policy covering these types of damages is paramount for small businesses. And yet — just 25% of small businesses have cyber liability insurance.
Many often assume cyber insurance policies are designed only for large companies. However, several insurance carriers now offer tailor-made cyber liability coverage for smaller companies. As an independent agency with access to dozens of commercial carriers, we can find the right coverage that meets the specific budget and risk-exposure levels of small businesses in our area.
Ultimately, cyber liability coverage comes at a low premium in comparison to the potential repercussions of a data breach. Representing a small percentage of a company’s annual insurance costs, it is well worth the investment.
You have worked too hard to lose it all.
Are you covered in the event of a cyberattack? Let us help you find the right cyber liability insurance solutions to help protect your business.
For more information, please contact us at 845-986-1177.We are your business, home, auto, and life insurance solutions provider and partner, serving Warwick, Greenwood Lake, Florida, Pine Island, Goshen, Middletown, Chester, Monroe, Newburgh, Orange County, and the Hudson Valley and Tri-State Area.