Why Businesses Need Cyber Insurance


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Another week, another data breach. Chili’s recently announced that its systems were compromised, joining the likes of Target, Applebee’s, Wyndham Hotels, The Home Depot, Equifax, and many others, all of whom suffered cyber attacks the past few years.

But data breaches and cyber attacks affect all types of businesses and industries – not just the ones that we see in the news. In fact, 90% of all data breaches impact small businesses.

How does it affect them? A breach can cost upwards of $38,000, and a whopping 60% of small businesses go out of business within six months.

Small businesses need to take a number of steps to mitigate breaches and the impact they have on their businesses. Steps include things like keeping malware software up-to-date, sharing best practices with employees for securing data, and making sure the payments technology protects customer card information.

But when those things fail, it’s essential that businesses be able to recover. In an age where technology is becoming more and more ingrained in businesses, cyber liability insurance is more important than ever before.

Cyber insurance covers a broad range of information security-related claims, including data breaches, network failures, and media or content liability.

To learn more about cyber insurance and to get a quote, head here.


References:

  1. Trustwave: 90% of all data breaches impact small businesses
  2. National Cyber Security Alliance: 60% of small businesses go out of business within six months of an attack
  3. Kaspersky: A breach can cost upwards of $38,000