If your small business is victimized by a cyber-attack, data loss insurance helps mitigate costs. It is designed to protect and support your business. If your business creates or stores sensitive data, you should consider investing in protection. Businesses that hold customers’ personal data are especially vulnerable to attack. Hackers seek out this information to use fraudulently. Bank account information, customer records, credit card numbers and social security numbers are especially appealing to criminals. A breach of this valuable information is likely to liability claims against your company.
Reasons to Invest
The ramifications of a cyber-attack can be devastating. A surprisingly low number of businesses invest in data loss insurance despite the risks. Below are some reasons to consider investing in insurance.
- General liability coverage doesn’t cover data breaches. Most policies specifically exclude loss incurred due to the Internet.
- Cyber-crime is the fastest growing crime in the world. Everyone online is a target, including your business.
- Your reputation is important. Building it back after a breach is costly. Insurance helps with these costs.
- Small companies are targets too. Although a big business may have more vital information, small businesses tend to have less security. This makes them an easy hack.
- You can be held liable for the loss of third-party data.
You are risking your business if you are without insurance. It only takes one breach to devastate your company. Invest before it is too late.