Protection is available and increasingly more affordable
There’s been no lack of cyber attacks and data breaches affecting governments and big-name businesses this year. Hacking of SONY, JPMorgan Chase, Home Depot, and eBay might grab the headlines, but hackers are inflicting plenty of serious damage to small businesses.
More than half of small businesses with revenues under $10 million experienced a data breach last year, and most experienced multiple breaches, according to the Ponemon Institute. The average cost to a small business for a data breach rose 15 percent to $3.5 million, according to the Hartford. The average cost per lost or stolen record is $145, an increase of 9 percent from last year. These costs include expenses for digital forensics, fines, credit monitoring and identity restoration, crisis management and attorney fees. Notification to those affected by the breach is also a significant cost, averaging more than $500,000.
Cyber criminals know that small businesses generally lack the resources to protect against attacks and make for easy prey. Ironically, small business owners have historically been reluctant to purchase cyber risk insurance, reasoning is that it won’t happen to them or that they can’t afford the coverage.
Fortunately, small businesses owners are starting to pay attention. There’s an increase in acceptance of the role technology plays in their business and the vulnerability that presents. It helps that the Cyber Insurance application process and underwriting criteria are much less strenuous and premiums are lower than in the past.
The Hartford’s infographic offers tips for preventing a cyber attack and statistics on just how vulnerable small businesses are to hackers. Call a Sadler Cyber Insurance expert today at 800-622-7370 to discuss your company’s needs in protecting the business you’ve worked to so hard to build.