According to a recent report, approximately 75 percent of small businesses don't have a cyber risk insurance policy in place. Sure, today's business owners are seeking insurance policies to protect themselves from floods, fires, or natural disasters. However, when it comes to a viable threat such as a hacker gaining access to company's network, three-quarters of small businesses are not prepared.
Cyber Attacks Are On The Rise
What's alarming is that cyber attacks are on the rise. New data indicates that the number and size of cyber attacks are increasing. Criminals are aware that the typical small business doesn't have the security resources in place to prevent a hacking, which is why small businesses are often the target of cyber attacks.
If your network and confidential data were to become compromised by a malicious third-party, how would your business survive the situation? The reality is that 60 percent of small businesses that experience a cyber attack are out of business within six months. If your business is to become hacked, the damage that it will do to your reputation will be more difficult to overcome than the actual cost of the attack itself.
Why You Can't Afford To Not Have Cyber Insurance
The technology used in the workplace is going to continue to become more complex and sophisticated as will cyber risk. This is why your business can't afford to not be prepared with a cyber insurance policy. While cyber insurance won't help you prevent cyber attacks, it will help you to offset the costs associated with the recovery after a cyber attack. The typical cyber insurance policy will cover expenses directly related to the business and third-party claims.
As you begin the process of shopping for cyber insurance, a best practice is to create a cyber risk profile for your business. Be sure to include any expenses that you would need to have covered if your business was to face a cyber attack.
At Summerlin-Roberts, we understand that there is no one-size-fits-all solution when it comes to cyber insurance. Our goal is to help you identify any potential cyber risk, and we accomplish this by providing our clients with a comprehensive risk assessment on how to best protect your business. Please contact us to learn more about cyber insurance and why this is an extremely important consideration when operating a business.