What Small Business Owners Need to Know About Cyber Attacks
As a business owner, here’s what you need to understand about cyber attacks and data breaches.
Contrary to what you might believe, every business faces the risk of cyber attack. In fact, American businesses lose millions of dollars every year as a result of cyber attacks and data breaches. If you are a business owner, then it’s important that you are taking this risk seriously. Here are some of the things that you need to know about your business’s cyber liability risks.
Data Breach is More Common Than Ever
In the modern world, businesses are more reliant on digital devices and internet connectivity than ever before. However, this increased connectivity translates into an increased risk for cyber attacks and data breaches. According to research, the rates of cyber attack are already up 40% as compared to 2017. This means that business owners need to be more concerned about this risk than ever.
Data Breach is More Expensive Than You Might Think
Another thing that you need to understand is that a data breach will cost your company a significant amount of money. In the event of a data breach, your company will be responsible for the expenses associated with informing your clients about the breach, recovering compromised data, repairing affected computer systems, and so on. Additionally, your business might also face the cost associated with client-filed lawsuits. While larger corporations might have the resources to move past a data breach, smaller companies might not be able to survive this drain on their resources.
There are Other Consequences to Think About
Even if your business manages to survive the monetary losses associated with a data breach, there will be other lasting issues. For instance, your business’s reputation might be tarnished after experiencing a cyber attack. This, in turn, can lead to a distrustful client base and lost business opportunities. Additionally, victimized businesses may also have to deal with their competitors using the data breach as a means of promoting their own companies.
When you understand everything that’s at risk, you can see why it’s so important to protect your business against the risk of cyber attacks and data breaches. Luckily, having the right commercial coverages in place is one way to address this risk. For assistance with your business insurance, contact the experts at Remland Insurance in Orange, California. Our dedicated team is ready to get you covered today.