For Our Blog Is Cyber Insurance worth it for your business?
For many business owners, managing day-to-day and faced with tight margins, their cybersecurity feels like a low priority. Yet, now more than ever a cyberattack can have a significant negative impact on a business, its financial health, and reputation.
Cyberattacks are on the rise. It seems like every day there is a news story about a cyberattack – like the recent cyberattack on Colonial Pipeline. While many of these stories represent attacks on larger firms, small businesses are often the target of these cyber criminals and the impact of a cyber breach can be devastating. That’s why more and more businesses, large and small, are taking note of the issue and protecting their business with cyber insurance. However, one question remains – is Cyber Insurance worth the cost? In this helpful blog, we seek to shed light on this important question.
Cyberattacks can affect any business – small, medium, and large.
Many business owners think that cyber attackers only target technology companies. That is simply not the case. Regardless of industry or sector, big or small, any company that collects data as part of its operations will be a target. Let’s face it, without customers there is no business, and every business has customers. As a result, cyberattacks and cybersecurity have become a mainstream business issue, and every business should consider cyber insurance. The fact is, that a business is 9x more likely to be hacked than have a fire. Plus, businesses with fewer than 100 employees are the target of a cyberattack 3 out of 4 times.
You may be surprised to learn that a Cyber Insurance policy is often more affordable than it is perceived to be. It is not unusual for a small business to purchase Cyber Insurance for as little as $750 a year (or $65 / month). When you consider the financial impact of a cyberattack that often costs $15,000+ or even more than $100,000, Cyber Insurance coverage could be well worth the cost.
Being well protected is cheaper than the cost of a cyberattack.
If you are the victim of a cyberattack, the costs can add up quickly, especially when you factor in business downtime. Cyber Insurance will always be less expensive than the alternative of dealing with a costly cyberattack without protection.
Consider this, research has indicated that a security breach involving just 150 customer records could cost tens of thousands or more, not including any lost income. In such a situation a business could be down or offline for three to five days. During this time without revenue, employees are still paid, and customers need service to meet your obligations. And you may need to pay for an external expert to get back up and running.
Talk about a stressful situation. Even if you think you can cover these costs, what about the reputation hit your business could take. Try to put a number on that. So, in this context cyber insurance can be an absolute lifeline. Beyond financial protection, Cyber Insurance can help give you access to resources and support to help your business recover quickly.
Cyber attacks are real and small businesses need real protection.
As we know, small business owners are often involved in many aspects of their business, juggling priorities and tasks. So it’s not surprising that cybersecurity and cyber insurance often get overlooked. But with cyberattacks on the rise, this is a mistake. But you don’t have to go it alone.
Bauld Insurance has partnered with Coalition, an innovative firm that specializes in cybersecurity. Coalition provides a wide variety of cybersecurity resources and tools to help businesses protect themselves from the growing threats of a cyberattack.
Like most matters of insurance, coverages may seem complicated, but that’s where our Bauld Insurance Advisors can help. Our Business Insurance Advisors will understand your business risks and exposures to determine what Cyber Insurance coverage can help protect your business. Contact an Advisor today.