Does your business have a response plan in case it gets hacked or otherwise breached? If not, you aren’t alone. About 75 percent of small businesses do not have a data breach response plan, while 98 percent do not have cyber liability insurance. If your business falls into this category, it will be completely unprepared if a cyberattack does occur.
But the majority of small business owners don’t even know that cyber liability insurance exists, and you certainly can’t invest in a protection if you’re not aware of it. The truth is that more people hear about the repercussions of a data breach than they hear about methods of mitigating the damages. Why?
The first reason is that cyber liability insurance is a relatively new product, since hacking itself is a relatively new form of crime. Some insurance providers don’t offer this coverage, and the providers that do offer it may not advertise it as well as other lines of business.
The second reason is that most people associate cybercrime with large corporations. Remember the hack on Target last year? But while these attacks are highly publicized, it’s actually small businesses that have a greater risk—they just don’t get the same media exposure. This greater risk is often tied to lax digital security, whether due to lack of effort or lack of adequate funds.
On average, a business that experiences a cyberattack can expect to pay around $200 per stolen or leaked record. If you’re talking about hundreds (or even thousands) of records, that price tag starts to add up quickly. With a data breach response plan in place prior to a cyberattack, you may be able to cut some of those costs down thanks to your preparedness.
However, one of the best ways to protect your business from cybercrime is with cyber liability insurance. While this coverage can’t prevent a breach from occurring, it can help fund the associated expenses, which may include:
Notifying affected parties (ex: customers whose credit card numbers were stolen) Offering credit-monitoring services to affected parties Beefing up digital security to prevent future attacks PR services to repair your business’ reputation And more
Ready to learn more about protecting the digital security of your business? Our agency is here to help!
We’ve got you covered. Call Texas Insurance Agency at (713) 675-2626 for more information on Houston business insurance.