“The disruption to our business, the extent of unanticipated costs and expenses, and the unwelcome frustration and concern caused upon our customers have all been, and continue to be, significant.” Eataly said in a statement.
Good Article in the NY Times from this past summer. A restaurant named Eataly (delicious food) had a breach and in the grand scheme of things, this is a typical small business data breach. The most striking quote was the statement from the restaurant:
“The disruption to our business, the extent of unanticipated costs and expenses, and the unwelcome frustration and concern caused upon our customers have all been, and continue to be, significant,” Eataly said in a statement.
This is what we see in small data breaches – the costs, disruption, damage to reputation are all greater than the small business ever anticipated. This seems to be for a few reasons, including “It won’t happen to me” or “This is probably covered somewhere in my insurance”.
We talk about big breaches in the news, and there is a lot of educating going on in the insurance world from the carriers, down to the agents, and down to the end customers. The typical response from a small business is that they outsource the payment processing, that they don’t keep a record of card numbers, or the data is not on our computers. At the end of the day, the liability is not outsourced and small businesses are not prepared for a breach. This type of event can be very damaging to small businesses and can put many of them out of business as they don’t have the financial resources to manage a breach.
Small Business Cyber Insurance is affordable and easily obtained. Burying your head in the sand is not a good approach, as this type of data breach can be very costly. My advice is to get educated, start with some basic risk management in this space, and talk to a cyber insurance specialist about a Cyber Insurance Policy. With the policy a business will usually get access to risk management services as well as post breach services like expert privacy lawyers, a public relations team, forensic firms, notification companies that can set up a call center, etc. All of this can save a small business from the unanticipated costs, expenses, and frustration that comes with a data breach.
ProWriters Can Help
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