Purchasing insurance for your small business can be an overwhelming prospect. Not only do you have to research provider and policy options, but you will need to determine exactly what policies your business needs. One policy you may not have considered investing in is cyber liability insurance. In fact, you may not have even heard of this coverage before; however, if your business handles sensitive data and/or customer information, then obtaining cyber liability insurance for your business is critical to protect your reputation and your business’s financial security.
As its name implies, cyber liability insurance policies protect businesses if they are subjected to a cyber-attack. Considering cyber-attacks have become increasingly common, and expensive, investing in cyber liability insurance is vital to protect your business from the unexpected. If you have not previously considered purchasing cyber liability insurance, here is a look at just a few of the reasons why this coverage is so critical.
A Data Breach is Almost Inevitable
Many small business owners do not think that they need cyber liability insurance because they underestimate the likelihood of a data breach. In fact, many business owners think that they will not be a target because their business is small. This is an understandable assumption considering that the news primarily reports large data breaches targeting large corporations; however, this is not the case. In fact, the opposite is true. In 2015, the SEC found that 60% of cyber-attacks were targeted at small businesses. The sad reality is that small businesses are often considered to be an easy target for cyber-criminals because these companies are often under-protected. This makes it critical that you take steps to prevent a cyber-attack and that you consider protecting yourself with cyber liability insurance.
A Breach Can Be Catastrophic
Not only is it likely that your business will suffer from a data breach at some point, but if you do come under attack, the results could be catastrophic if you are not properly protected. The fact is that cyber-attacks can be extremely expensive, with the average cyber-attack costing businesses $200,000 in 2019. Without the protection of cyber liability insurance, a cyber breach can then have disastrous results. For many small businesses, the costs of a cyber-attack prove to be insurmountable, with over half of small businesses that suffer from a data breach closing within six months. Investing in cyber liability insurance can then help to protect your business and prevent a cyber-attack from causing irreparable damage.
Unfortunately, cyber-attacks are a real and costly threat to small businesses, making it critical that you consider investing in cyber liability insurance.
If you would to like to discuss your options for cyber liability insurance please call us at 561-732-9305 our quoting hours are Monday through Friday from 8:30 AM to 5:30 PM. In addition, you can request a quote online. Please remember, We Handle All the Work, While You Save!
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.