Starting a small business from scratch costs money. The very last thing you'll want to happen is to lose your investment. However, losing your investment is a very real possibility if you should be the victim of a cybersecurity breach.
If you handle any of your business online, it's wise to get cyber risk insurance and protect your assets.
The Financial Cost of Starting a Small Business
There are a number of costs associated with starting a small business, including:
In 2009, it was estimated that starting a small business cost as much as $30,000. The truth is the cost of starting a small business depends entirely on what type of business you're starting. The U.S. Small Business Administration estimates that a small business can cost anywhere between $3,000-$30,000. If you're working to build a franchise out of your small business, it's going to cost you more. But if you're planning on keeping your small business to 10 employees or less, the cost will be less.
Less thought of but perhaps most critical is insurance, particularly cyber insurance. If you conduct any of your business online, maintaining cyber insurance should be one of your top priorities. According to the National Small Business Association (NSBA), 85 percent of businesses sell their products and services online. 44 percent of small businesses have been victims of cyber attacks.
The Financial Cost of a Data Breach
The cost of starting your small business will seem like nothing in comparison to the monetary losses caused by a cyber attack. As of 2014, the average cyber attack cost small business owners close to $21,000, nearly as much as what it costs to start a small business. If you've been in business for less than a year, could you cover the cost of a cyber attack out of pocket? Could your reputation recover?
Fortune Magazine has reported that the cost of a compromised, confidential record (including but not limited to payment information and health records) can cost an average of $158 to retrieve. If you have 10 or more clients or employees whose information has been stolen, you'll quickly find yourself losing thousands of dollars to recover said information. Cyber risk insurance can save you from all of that.
A cyber risk insurance policy doesn't just offer liability protection for a data breach, cyber insurance also covers multimedia, extortion and network security costs. Policies of course vary by business type, with each policy specializing in a particular area of coverage.
At CyberPolicy, we can help you find the cyber risk insurance package that best meets your company's needs. Visit CyberPolicy.com today to see what we can do for you.