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Why Cyber Breach is Inevitable for Small Businesses

August 31, 2016  |  Posted by Nick Peterson  |  3860 Views

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CYBER BREACH (1)

Unfortunately with the advantages that advancements in technology have provided, a threat equally as influential emerges– cyber data breaches. A data breach is an incident in which sensitive, protected, or confidential data is intentionally or unintentionally released to a distrusted environment.

For smaller businesses to assume that they are immune to these types of catastrophic events is what could force them into bankruptcy not if, but when their time comes. In fact, 74% of small to mid-sized businesses have been victimized by a cyber attack, and almost half lost confidential data.  According to the Symantec 2010 Global SMB Information Survey, the average cost of an attack is $188,242.

In addition, many small businesses are falling victim every day to cyber thieves that deploy ransomware that blocks access to files and holds your computer hostage.  If this occurs, having a professional and experienced resource available to help you can make all the difference.  So what are businesses doing about it?

Capacity Insurance Company began offering coverage on eligible policies in 2015 and today over 30% of insureds choose to purchase coverage. This policy is unique because it includes data breach services for policy holders that include access to a team of experts that will assist you with crisis management, questions, documentation and notices.  Insureds also have access to online resources that provide tools to assess exposure, gauge vulnerability and provide consulting to protect against attacks.

As we gear up for October’s National Cyber Security Awareness Month, be aware that businesses can no longer afford to risk being uncovered in a cyber breach, and we must shift our attitudes to match that of our current generation. A loss is not only possible, it is probable. The difference between easy recovery and potential catastrophe is in the actions we take to protect ourselves.

MacNeill Group also offers stand alone Cyber policies through several of our trusted carrier partners.  For additional information contact your commercial underwriter.

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