We strongly encourage all our clients to consider the value of cyber insurance, especially if they handle digital information or store sensitive data on customers.
One of the first topics to cover with many new cyber insurance buyers and small businesses, is the business’s regulatory or contractual responsibility with regards to customers’ personal data. If your business stores customers data such as names, addresses, credit card information, Social Security numbers, and more, on any type of computer system on or offline, then there is a regulatory obligation to keep that data secure, and therefore, a higher price tag in the event of a breach.
Many are surprised to learn the real costs associated with a breach. According to a USAToday report from 2021, cyberattacks cost small and medium-sized businesses an average of $2.235 million. On top of that, the study showed that 60 percent of the businesses that were polled said that attacks are becoming more severe and more sophisticated each year.
Small business owner's are wise to invest in a cyber security policy for their business. Maybe even more important than a fire insurance policy.