Let's review some facts:
- Data breaches and cyber attacks have increased another 23 percent in the last year
- 25 percent of all breaches have occurred in organizations of 2,500 or fewer employees
- The average cost of a data breach has risen to $6.53 million (this includes costs related to loss)
- Costs associated with that breach average $217 per compromised record.
As you can imagine, it's a little more complex than a phone call to your IT guy or gal. The most important thing at stake for a small to medium sized business when it comes to a data breach is not only their business, but their reputation. These large corporations have huge public relations firms to come to their aide, and when it comes to defense from a lawyer, money is no object. Worst case scenario their stock might drop a few points. But again, the PR firm is going to make a statement and put everyone at ease. Another thing these large companies have is a trusted brand, which can go a long way when an attack occurs. A small to medium sized business probably does not have the luxury of any of these. One small breach could cause their livelihood to crumble and never recover. Fortunately, there are options. The first option is to do nothing and have the mentality that it won't happen to you. The second option is a solution.
When it comes to Business Insurance, business owners need to be thinking about more than just General Liability, Umbrella, and Property Insurance to protect their business. Since we live in this digital age now, Data Breach Coverage should be considered by all business owners. The amount of coverage is going to depend on your level risk and your business. Here's some basic coverage information you should look for when it comes to Data Breach:
- Breach notification expense
- Credit card monitoring services
- Cost to retain a public relations consultant
- Extortion expense
- Access to a Breach Coach
- Worldwide coverage
These are just a few things to look for when considering a Cyber Liability policy. Here's a fantastic checklist to review. Bottom line, a stolen laptop, smart phone, a stolen record or a virus can have an enormous impact on a business. There are many options when looking at Data Breach coverage for your business. It can be very confusing and overwhelming, if I can help, please let me know.