Your Small Business Needs Cyber Liability Insurance

Your small business needs cyber liability insurance. Did you know that according to a Small Business Administration (SBA) survey, approximately 90% of small business owners and operators believe that their organization is vulnerable to a cyber attack, yet they simply cannot afford the necessary IT solutions to prevent them? In essence, the vast majority of small business owners either have limited dollars and or limited time to devote, and or have absolutely no idea where to start when it comes to cybersecurity.

Small businesses, unlike larger corporations, are under the false belief that they lack the funds to initiate a cybersecurity plan that will actually protect them. However, this makes those small businesses even more vulnerable to cyber thieves because they are low lying fruit. The bottom line is that if you’re not protected, you’re an easy target for criminals. It’s like you’re leaving the door to your jewelry store unlocked at night and don’t have an alarm system in place. What do you think is going to happen? The financial repercussions of a cyber theft can be beyond devastating.

It could actually put you out of business. According to a Global State of Cybersecurity report, the average cost to recover from a cyber attack is $1.2 million. Unfortunately, that amount of money could easily force a small business into bankruptcy. The good news is that you can add cyber liability insurance to your small business insurance policy with ease. The investment probably won’t cost you nearly as much money as you’re expecting. Cyber liability insurance protects your business from both first and third-party cyber threats.

For example, you’re protected against viruses, malware, spyware, unauthorized content, theft and destruction of your data, business interruption and cyber extortion. If your small business relies on technology such as email, networks, and or dispatch systems in order to function, you need cyber liability insurance. Would you still have the ability to generate revenue if these systems were compromised? In addition, if your small business keeps digital records of employees and or customers/clients then you need cyber liability insurance.

In essence, if you digitize any record that includes a person’s identity, it’s a liability. It costs $300 on average to reimburse employees and or customers/clients for any cyber security breaches. If you have a large amount of digital records in your database, the money can add up quickly. For example, if you have 5,000 customer records and it costs $300 per record, we’re talking about $1.5 million out of pocket. However, your cyber liability insurance policy can save the day by covering that $1.5 million.

If you own a small business in the Commonwealth of Massachusetts then you need to ensure that you have the proper insurance coverage in place. We can help you get the best deal on all of your personal and or business insurance needs.  Please consult with a professional insurance agent that can answer your questions about all insurance related topics. It is important to fully understand exactly what you are buying when it comes to insurance policies.

If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business-related insurance needs now and in the future.

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