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Cyber Insurance: Does My Business Need It?

DATE
01.13.16

“Your credit card has been compromised.” Now that’s a phrase none of us wants to hear. Yet, chances are, we’ve all been a victim of credit card or another type of fraud. In recent years, cyber breaches that often result in stolen information have skyrocketed. According to a 2014 report released by the National Small Business Administration (NSBA), the cost of cyber attacks to small businesses has more than doubled, averaging $20,752. In 2016, that number is likely to increase.

Maybe you haven’t been directly affected by a cyber attack but have you ever considered the financial implications on a business when data is compromised? Here are some costs to consider when deciding whether to add cyber coverage for your business.

Costs of notifying customers affected by the breach

Fees for replacing or repairing damaged electronic equipment

Loss of income due to website maintenance

Liability resulting from compromised information

An attack can be devastating to a business. That’s why protecting your business with appropriate cyber insurance is more important than ever. The NSBA report states that at least 50 percent of small businesses have been the target of an attack. As with any risk, you should take preventative measures to secure both your own and your customers’ data. While it cannot prevent a breach, cyber coverage provides the “best defense” to protect your business and your customers in the event of an attack.