It takes only minutes for a cybercriminal to hack into a company server you thought was secure. Yet a cyberattack will cost your company at least thousands of dollars and is not covered by typical insurance policies.
If your business uses computers, the best option is cyber insurance, or cybersecurity data breach insurance, to give you the financial protection you need in the event of a cyberattack.
It doesn’t matter how big your business is, if you store credit card information, social security numbers or any kind of personal data, your system is a target. If your business’s server is hacked, it can cost tens of thousands of dollars to recover, not to mention the loss of business and insecurity for employees and customers.
That’s why cyber insurance is a necessity for every small business. It is specifically designed to provide comprehensive coverage for data breaches and other cybercrimes, allowing you to focus on your business, employees and customers.
“Often it takes weeks to even realize a business’s server has been hacked,” said Joan Bates, Vice President at Bates Insurance Agency. “By that time, it’s likely the cost of the data breach will be significant.”
The numbers are staggering. A cyberattack takes place every 45 seconds, with almost four million electronic data records breached every day, according to Breach Level Index (BLI), a global database tracking cybercrime.
“The average data breach costs a small business $200,000,” Bates says. “Many small businesses are unable to recover from such a loss.”
A customized cyber insurance policy can cover a wide range of costs associated with a cyberattack, including:
“If you’re a small business owner today, cybersecurity insurance is a necessity,” Bates says. “Without it, just one incident can put you out of business.”
Coverage costs vary depending on the amount of coverage needed. But, Bates says, the annual cost of a premium is likely to be less than the cost of recovering from a data breach without insurance coverage.
“Without cyber insurance, a business will likely face thousands, or tens of thousands, of dollars in expenses and lost business,” he says. “Having a cyber insurance policy is truly a cost of doing business today.”
Bates says it is best to talk with an insurance representative well-versed in cybersecurity when looking to get coverage for your business.
“A cyber insurance policy should be tailored to meet the needs of your particular business,” he says. “Not only could it save you money, it could save your business.”