Almost all businesses operate at least partially online. Because even small businesses depend on the internet and wireless connectivity, cybersecurity should be a main business concern. Since smaller businesses are a prime target for cyber criminals, you also need business insurance coverage for protection in the event your company’s computers or networks are attacked. Cyber business insurance provides important protection if your business is the victim of a cyber attack.
Small Businesses Especially Susceptible
While it may seem as if cybercriminals have more to gain if they can successfully hack a large company, the truth is that smaller businesses are just as desirable. One of the reasons for this is because many smaller businesses may not be employing the right kind or amount of security to prevent a security breach.
Cyber criminals are often able to access the networks of smaller companies more easily, resulting in a quicker payoff. Almost 50% of all cyber attacks each year are made to small companies, resulting in an average of $32,000 in stolen funds, not to mention the amount of sensitive information cyber criminals access.
Unfortunately, it is estimated that 60% of small companies hit with a cyber attack go out of business within a year of the attack. This is due in a large part to the fact that most of these companies do not have the right cyber business insurance coverage.
Why Cyber Business Insurance Is Essential
Losing money to a cyber attack can be bad enough. If your business bank account is emptied, you could have a hard time staying in business. Yet what can be even more dangerous for your company is the loss of sensitive data such as customer, employee, and supplier information.
Your business could be liable for additional damages including fines, lawsuits filed by those affected, and even serious damage to your business credit. Cyber business insurance protects you against these and other losses that may occur due to a security breach.
In addition to understanding the threats against your company and employing the right cyber security strategies, this insurance can be instrumental in helping the business survive.
Protecting Your Business Against Cybercrime
Your first line of defense in the prevention of a damaging attack is always to protect your business with the right cyber security services. One detail that many business owners fail to think of when protecting their company is making sure they have business insurance in place that covers cyber attacks.
At the rate today's technology is changing and new threats are surfacing, even companies with the best cyber security sometimes fall prey. To protect your business against the ongoing damage you could suffer due to a security breach, purchasing business insurance coverage for cyber crimes is something you must consider.
Business insurance is a considerable, yet very necessary expense if you own a small business. To ensure you are properly protected against all threats whether physical or digital, you must also think about protecting your business against cyber crime.
Hopefully, your business will never be affected by a security breach. In the event this does happen and sensitive business and customer information is stolen, additional cyber business insurance coverage can protect you against any liability that may result!