The reality of cyber security for small businesses
the Internet-dominated business arena, companies store more sensitive information than ever on their computers. But a shockingly low number of small businesses have invested in cyber liability insurance to combat the potentially devastating effects of a cyber-attack.
Many small business owners are unaware of the high risk data breaches at their establishment, in the belief that hackers are likely to attack only high-profile, high-revenue firms.
Regardless of company’s size or industry, business owners must take action to secure their customers’ valuable data against the possibility of a cyber-attack.
High costs of a data breach recovery
When criminals get access to company databases they become privy to a vast array of information. This can include social security numbers, credit card numbers, addresses adn other identifying data. They can also gain access to sensitiv business data, which they can use to open and access accounts. Recovering from a business data breach can be very costly in fines and loss of reputation.
Businesses more than often have to close their doors while they investigate the source of a breach, which means they suffer from decreased sales due to negative publicity and diminished customer confidence. It can take days or weeks for a business to get back up and running. They will also have to do updating or possibly implementing a new security system which could cost a fortune.
Cyber liability insurance is another tool small business owners can use to prevent financial disaster in the event of a malicious attack. It covers policyholders in the event of a cyber-attack. As business owners recover information and resources from a breach, the insurance will help with expenses such as credit monitoring, loss of revenue, crisis and reputation management and customer notification.