Small Business Cyber Risk - Current Climate

Posted by Scott Helfrich on 12 October, 2017

 Cyber attacks and data breaches are becoming more commonplace, and many business owners are asking themselves how at risk they are for a breach. Unfortunately, small and medium size businesses have never been more at risk.


Cyber Attacks Have Grown Year-Over-Year


Since 2015, the rate and impact of cyber attacks and breaches have increased dramatically. In 2015, 780 breaches occurred, which exposed and compromised over 170 million personal records. 1,093 breaches occurred in 2016, a frightening increase of 40%. So far in 2017, 1,056 data breaches have occurred, and with two and a half months left in the year, we will likely see a similar record-breaking count before 2018.


Many business owners may think “it will never happen to me”, but according to a survey conducted by Munich Re’s HSB, more than 53% of US businesses have experienced a breach in the past 12 months.


The Cost of Cyber Attacks


Of the businesses hacked in the HSB survey, 73% of them spent over $5,000 to investigate each attack, restore or replace software or hardware, or cover other repercussions.


38% of businesses spent more than $50,000 to fully recover. That includes some 10% which spent between $100,00 and $250,000, and another 7% which spent over $250,000.


Over 56% of businesses within the study bought cyber insurance for the first time, a common trend amongst small business owners who believe their business is too small for a hacker to target. Regardless of size, all businesses are at risk of a cyber breach.


How To Protect Your Business


The best way to protect your business from cyber attacks is to research and purchase Cyber Security Insurance. Outside of  legal fees and expenses, cyber insurance typically covers:

  • Notifying customers about a data breach
  • Restoring personal identities of affected customers
  • Recovering compromised data
  • Repairing damaged computer systems

 

AP Intego offers Cyber Security Insurance to small businesses that are looking for protection. As data breaches become more common, Cyber Security Insurance is a must for any business that values their customer’s data. If you are interested in learning more about Cyber Security Insurance, you can contact one of our Cyber Security Insurance experts at (585) 214 - 8565.

Topics: Coverage 101, Small Business Advice

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