We'd all like to believe we are invincible to bad things happening. And the state of our cybersecurity is no exception. When we hear that state−sponsored hackers attacked Sony or that hacktivist groups halted operations for PayPal and MasterCard, we tend to think, oh that only happens to the big guys. What would hackers want with my small business anyway?
Well, it turns out a lot. Truth be told, any organization digitally storing personal/financial information or operating in an online environment is vulnerable to cybercrime. While enterprise-level breaches make headlines, small businesses are infiltrated more often since they do not have the same resources to build robust cybersecurity policies as larger companies.
However, it would be foolish to brush off these threats as unavoidable and inconsequential. Especially when 60 percent of SMBs closed within 6 months of a security breach. Would your business be able to survive a cyber attack? Here are a few reasons to invest in cyber coverage sooner rather than later.
Protecting Your Small Business
While the first steps to securing your data include establishing cybersecurity measures and educating your employees about digital threats, investing in a cyber coverage insurance policy will protect you from the coup de grâce in case your company is breached.
#1 Stolen Funds or Data
According to one estimate, small businesses are victims of 71 percent of cyber attacks!
Hackers do what they do to gain access to your data. How they use it is really up to them. Will they use stolen account information to make phony purchases? Maybe they'd prefer to sell your data on the dark net? No matter their reason, it's bad news for you. The Ponemon Institute estimates that data breaches cost an average of $154 per record. And signs point rising costs in the near future.
#2 Lost Business Opportunities
There's a plethora of ways digital attackers can stifle your normal business operations. Whether it's blocking access to your site with a DDoS attack, crippling your network with malware or extorting your business with ransomware, there seems to be no shortage of damaging attacks in the hacker arsenal.
Business News Daily estimates that cyber attacks cost businesses $5,000 in lost business opportunities and $23,000 in downtime. Investing in a cyber coverage policy seems like chump change in comparison.
#3 Reputational Damage
While some risks have a price tag attached, others are a little more enigmatic, but no less harmful. Reputational damage falls in this category. How do you think customers, partners and employees will feel if your organization is hacked with no backup plan to protect their most valuable information?
#4 Customer Revolt
If the data breach affects enough dissatisfied customers, you could face a class−action lawsuit, which is the last thing you want after suffering a cyber attack.
While not offered by all insurers, third−party insurance plans cover financial costs relating to lawsuits, settlements, judgments and penalties directly resulting from cyberattacks.
We Got Your Back
To boil it down, investing in cyber coverage is just smart risk management. For pennies a day, you can guard yourself against tens of thousands of dollars in damages. Don't delay. Find affordable cyber insurance policies by when you visit CyberPolicy today.