Since this writing, there have been nearly 6 million data breaches, according to Breach Level Index (BLI), a global database that tracks cybercrime activity. BLI reports that almost 4 million electronic data records are breached every single day, with cyberattacks occurring every 45 seconds.
The average cost of a data breach is $200,000. Consider for a moment the financial position of your small business. If a cybercriminal hacked into your server, encrypted your private digital data records and extorted the data for ransom, could your company cut the loss?
In late October 2016, the Denver Post reported that 60 percent of small businesses go out of business as a direct result of having experienced a cyberattack. This is unsettling news. Small businesses can take anywhere from a couple of months to years to get started, and having it all fall apart after six months would be devastating. That’s why your small business needs business insurance as well as cybersecurity data breach insurance.
Cybersecurity Insurance: What Is It?
Similar to business insurance, cybersecurity insurance is intended to mollify business losses after a cybersecurity event has occurred and includes the following:
- Data Breach
- Server Damage
- Business Interruption
- Lost Data Restoration
- Cost of Legal Defense
- Cost of Forensic Investigation(s)
- Customer Notification
- Credit Monitoring
If a cybercriminal is able to successfully hack into your server, it could be weeks or longer before you discover the breach. According to CNBC, in 93 percent of stolen data cases, it took cybercriminals mere minutes to hack into a company’s seemingly secure server. In over 80 percent of those cases, the affected businesses didn’t learn about the breach until weeks later. In this amount of time, hackers can encrypt, steal and sell highly sensitive data on the dark web. This puts not only the confidentiality of your clientele in danger but your business operations and the organization itself, too.
Here’s something else to consider: Can you afford not to get a data breach insurance plan?
Cybersecurity Insurance: What Does It Cost?
You can find affordable cybersecurity coverage options easily online. CyberPolicy offers competitive rates from reputable insurance agencies that have specialties in cybersecurity insurance, including Symantec, CHUBB and the BCS Insurance Company.
The cost of a cybersecurity insurance plan varies by your industry and by your small business’s annual revenue. As noted by InvestmentNews, coverage can cost as little as $5,000 annually or as much as $50,000 for “policies that provide $1 million to $10 million in coverage.”
Given that the average breach costs small businesses $200,000, you wouldn’t need a policy that offers $1 million in coverage. This is when speaking with an insurance representative proves most fruitful. An insurance representative well-versed in cybersecurity would help you tailor your policy to meet the needs of your business and the satisfaction of your wallet.
You can qualify for discounts and lower your premium rate when you agree to pay a higher deductible, as with other insurance types. Cybersecurity insurance is meant to serve and protect you, your business and your clientele. Get coverage now.