The general public may only hear about high-profile cyber attacks that affect millions of people or shut down multibillion-dollar companies. But large companies are far from the only targets of cyber attacks.
Cyber crime is on the rise, and small businesses are at increased risk. For reasons we’ll discuss, cyber criminals are often more inclined to target small businesses than larger ones.
How can small businesses protect themselves from the high costs associated with data breaches and other cyber attacks? Read on to find out how the right level of cyber attack insurance can help protect your small business clients.
Why are Small Businesses Such Popular Cyber Attack Targets?
While small businesses don’t have millions of user profiles in their servers, they still frequently have information hackers value.
A small business may well store:
- Employee data
- Customer data
- Bank account information
- Credit card information
- Gateway data to other businesses
Even if business owners don’t realize their companies are storing valuable information, a hacker can find ways to extort money from them through business email compromise events or social engineering events.
However, small businesses’ data isn’t necessarily what appeals most to cyber criminals. Instead, average small businesses’ lack of adequate security measures makes them appealing targets.
Unlike multibillion-dollar companies, small businesses don’t have the time, money, staff, and other resources needed for a dedicated Information Technology (IT) department. As a result, many small businesses put digital security on the back burner.
Because many small businesses face challenges to achieve true cyber security, their systems are easy targets for hackers. Hacking a Fortune 500 company may bring criminals a bigger payoff. But doing so is so difficult, and months or years of their effort may lead to nothing.
Hacking a smaller business might lead to a smaller payday. But cyber criminals’ likelihood of success is much higher. Hackers are not often targeting a small business specifically, but targeting a known vulnerability in software that many businesses use, but may not have patched.
Counting the True Cost of a Small Business Cyber Attack
When a small business gets hacked, the results are often devastating.
The expenses associated with a cyber attack can often be too much for a small business to absorb or pay out of pocket. The costs of containing the data breach, repairing their systems, communicating the breach to their clients, and addressing customer fraud and damages claims can quickly become insurmountable.
Despite cyber attacks’ often catastrophic costs, the vast majority of small businesses aren’t ready for one:
- 83% of small businesses have put aside no cash for dealing with a cyber attack.
- 54% don’t even have a plan in place if they get attacked.
- And worst of all, 91% don’t carry cyber attack insurance.
Protecting Small Businesses With the Right Cyber Attack Insurance
Getting your small business clients insured is a critical way to protect them from a cyber attack’s often disastrous consequences.
The right cyber attack insurance policy will not only protect the business from the financial repercussions of a data breach but also force them to bolster their security.
To qualify for coverage, small businesses must meet a continuously rising cyber security standard. Insurers won’t want to cover a small business if the risk is too great. Learning about the importance of cyber attack insurance may be the wake-up call small businesses need to start investing in their digital security.
Once your small business clients comply with insurance companies’ security requirements, you can take the next step: finding them the level of coverage that they need.
At ProWriters we suggest the Cyber policy small businesses purchase include coverage for costs associated with:
- Regulatory fines and penalties
- Forensic IT investigations
- Customer notification
- Breach of contract and negligence claims
- Business interruption costs
- Ransomware payment
- Network rebuilding
To find the right Cyber Liability Insurance policy for your small business clients, partner with ProWriters.
With more than 20 years’ Cyber Insurance experience, ProWriters can give you the tools you need to get your clients the coverage they must have. Our powerful Cyber IQ Comparative Rate Platform lets you compare quotes from multiple top carriers in just minutes. At the same time, our comprehensive Cyber Liability Insurance program offers broad coverage designed to cover a wide range of exposures.
To get more information about cyber insurance for small businesses, schedule a call with one of our cyber experts today!
