cyber insurance for small business

When even heavy hitters like Experian get hacked, it makes headlines. If a small business is cyber-attacked, we don’t necessarily know about it, but it does happen. Stolen data can cost a company a lot of money, no matter its size. A small business, however, is more vulnerable and risks having to close due to expenses incurred.

Does your small business need cyber insurance?

As a small business, you may think that cybercrime only happens to the largest companies, or that the data you store isn’t important enough for an attack. But you are wrong. Small Business Trends states that in 2016:

  • 43% of cyber attacks were directed at small businesses.
  • 60% of small businesses close within six months of the event.

Small businesses often store customer information that the “bad guys” are interested in including:

  • Emails
  • Telephone numbers
  • billing addresses

Also, be aware that employees accidentally commit a certain number of security breaches.

After being raped or attacked

The aftermath of a cyberattack is expensive. A survey by the National Association of Small Businesses found that the average cost of a cyberattack on a small business is nearly $9,000.

Expenses include:

  • You need to bring in experts to ensure that you recover your lost data and put it out of the hands of hackers in the future.
  • New computers and equipment must be purchased.
  • Productivity is hampered.
  • Clients should be made aware of non-compliance, and there may be compensation costs involved.

Why Your Small Business Probably Needs Cyber ​​Liability Insurance

In recent years, cybersecurity issues have resulted in significant fines and legal fees. 55% of small businesses have experienced a data breach, and of that percentage, 53% have experienced multiple breaches, making cyber insurance a priority coverage for small businesses.

As a small business owner, a cyber insurance policy can cover legal fees, lost income, and many other costs caused by cybercrime, giving you peace of mind and helping you run your business smoothly.

In addition to being smart about protecting your data online, you need to be prepared for an attack with cyber insurance. Your commercial liability insurance alone is not comprehensive enough to cover all costs.

Some insurance providers customize policies to your needs, so you can choose the level of coverage and payments.

A cyber liability policy covers costs such as:

  • legal fees
  • Customer notification
  • investigating the incident
  • identity recovery
  • data restoration
  • Computer repair
  • Ensuring your system is secure
  • lack of time

Play it safe and make sure your business doesn’t go under due to a cyber attack. Learn more about cyber insurance and explore your coverage options at


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