If you weren't already aware of this, 2016 was a heck of a year for the United States... government agencies and companies were hit by 1,093 cyber breaches! This was a 40 percent increase since 2015, according to Bloomberg. Not six months into 2017, the U.S. has already seen over 300 breaches.
To make sure your business is protected after a cyberattack, arming your company with a robust cyber liability insurance plan is a great line of defense. If a cybercriminal should be able to gain entry to your server and access to your small business' sensitive data, you could risk losing your business. Don't believe that's possible? 60 percent of small businesses that experience a cyberattack go out of business just six months later.
Here's a quick look at the industries that are being hit the hardest, and what you can do to keep your small business from becoming another statistic.
Protecting What's Yours: Your Business
Unsurprisingly, the healthcare industry suffers the largest data record leakage, with over half a million patient records compromised so far. Forbes reports that it's the healthcare industry too that is the cybercriminal's number one target. However, SC Magazine reports that the healthcare care industry makes up just slightly above 25 percent of 2017's cyberattacks. It's the business industry that has the highest percentage of breaches, coming in at nearly 50 percent.
In an interview with SC Magazine, Michael Patterson, CEO of the software company Plixer International, said the reason for the success of these attacks is because the attacks are evolving: "Everything from evolving ransomware and other malware to DDoS attacks, third-party vulnerabilities to insider threats have expanded the threat landscape almost exponentially. Despite the billions of dollars spent in research and development, exploits continue to be found and many that are not even discovered."
Phew! That's a lot to take in. What Patterson has said translates to mean: cybercriminals work tirelessly to create and modify malware. What does this mean for your business? It means that without some sort of protection plan set in place, cybercriminals will work to set up an advanced attack on your small business. A combination of cyber insurance and business insurance will cover the financial costs that come from a cyberattack.
The financial ramifications of a cyberattack could significantly set your small business back. Remember, over half of small businesses go out of business after a data breach. The average cost of a small business cyberattack costs $38,000, plus an additional $10,000 to cover IT and potential lawsuits.
After crunching the numbers, could your business handle this exorbitant cost out of pocket?
You shouldn't have to sacrifice your business because of one data breach. Cyber liability insurance policies take care of equipment replacements costs and professional liability covers litigation and restitution. For only a couple hundred dollars a year, you're insuring your company against tens of thousands of dollars in damages. Just be sure to supplement your insurance plan with strong cybersecurity practices, including the use of VPNs and two-point authentication.
Don't lose your business because you didn't have insurance. Get a free cyber insurance quote today with CyberPolicy.