Cyber liability should be a concern for all businesses in 2019, regardless of their industry and size. The numbers recently came out for cyber breaches and liability claims in 2018, and they are cause for alarm if you have yet to make cyber security a priority at your business.
The 2018 Verizon Data Breach Investigations Report found that approximately 58% of all cyber attacks last year targeted small businesses. After an attack, average costs to respond appropriately and recover were nearly $385,000, a staggering, if not bankrupting, number for most small businesses. This report also states that a majority of cyber-attacks were on small to mid-size businesses. Last year, 67% of attacks targeted small and medium-sized businesses and 58% of those businesses experienced a data breach.
Not only are cyberattacks becoming more and more prevalent, but this recent report revealed that non-healthcare related businesses are experiencing the largest increase in attacks. This report noted that in 2017, the number of cyber-related crimes nearly doubled. Between 2016 and 2018 and there was a four-fold increase in cybercrime attacks.
What can your business do to protect its operations from a disastrous cyber attack or data breach? While there are many steps your business should and can take, one involves securing a cyber liability insurance policy that can help you manage and survive; recovery, notification, government compliance, and legal defense in the event of an attack. Overall, this insurance is much more affordable than dealing with the financial devastation that can occur when your cyber security is compromised.
Are you unsure of where to begin? At Rich Haag & Associates, we can go over your cyber liability insurance options with you and solidify a policy that protects your business.