Every Small Business Needs Cyber Insurance

Source: sadlerco.com - Every Small Business Needs Cyber Insurance
Author: John M. Sadler

Protecting your assets in our digital world

We’re all aware of the recent headline-making news stories of data breaches at large companies such as Target, eBay and Michael’s. In fact, many of us of have probably been affected by those breaches, whether we’re aware of it or not. And it’s that general lack of awareness that’s the problem when it comes to cyber security.

Small businesses are just as vulnerable to cyber crime as the mega companies, if not more so. To think otherwise is naïve. An obstacle for small business owners is often a lack of necessary resources and staff to protect against a data breach. What many small business owners don’t realize about a cyber attack is the huge impact it will have on the business’ bottom line and reputation. Once the immediate crisis is over, large and small companies face costs that eat into their earnings for years. Target lost a lot of business in the midst of the 2013 holiday shopping season and is still struggling to regain customers and trust.

Weighing the costs

Notifying customers of the breach, restoring your system and installing preventive security measures, payment of fines and defending against any resulting lawsuits are only some of the costs a business can incur following a data breach. Therefore, it’s important to have the appropriate cyber product to protect the finances of the business and to cover the cost of responding to an event.

Recent data shows that 31 percent of all cyber attacks take place in companies of less than 250 employees. Sadly, 40% of small businesses don’t have a contingency plan in place and most are forced to shut down within a year.

Sadler insurance experts are knowledge about cyber crime. They understand the exposures your unique business faces, whether you own the data or simply process the data that needs protected from cyber criminals. Call us today at 800-622-7370 so we can answer any questions you may have about cyber insurance and work up a cost-effective policy that gives you peace of mind.

 

Source:  Morgan Smith, “Cyber is a Must for Small Businesses, Including Yours,” iamagazine.com, 14 Oct. 2014.

 

 

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