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Yes, a cyber attack can happen to you
Hackers and thieves target small businesses
Why should a small business purchase insurance coverage? After all, some owners might say, they may not have many customers or big revenues.
They have more data than they realize
In fact, hackers and cyber thieves do attack smaller businesses, often exclusively, because they are easier to infiltrate and most have more sensitive data than they might think.
Almost nine out of ten keep 1,000 records
An HSB survey of small businesses conducted by Zogby Analytics found that 87 percent of companies stored more than 1,000 records containing personally identifying information or health records of employees, clients and vendors.
Small businesses are easy targets
Small businesses are easier targets. They might not have the IT staff or resources to adequately protect their computer systems or provide security training for employees. HSB’s survey found they are also less likely to encrypt stored data: about half do so, compared with 100 percent of large companies.
Stolen identity records are sold on the dark web
Hackers can package large numbers of personal records and sell the information they steal. It’s estimated that the median price for a stolen identity is more than $20 and up to $10 each for medical records. That can add up fast when thousands of businesses are compromised.
Cyber extortion and phony email schemes
Cyber extortion and email payment schemes can threaten a business of any size. There has been a spike in ransomware attacks that demand payment to unlock company systems. And small business employees can be tricked by phony emails into paying company funds into bogus accounts.
They’re a back door into bigger companies
Cyber criminals may hack smaller businesses as a pathway into larger companies. That’s because the smaller business may be a contractor or supplier with access to the bigger entity’s computer system. The Target breach of 41 million accounts was traced to the stolen credentials of an HVAC contractor.
Cyber insurance is often part of doing business
For that reason, many corporations and other organizations now insist that a small business have cyber insurance coverage as part of a contract to provide goods or services.
48 states now have data breach notification laws
Forty-eight states now require a business to notify individuals who are affected by a data breach. How many small business owners would know where to start when they’re required to contact customers or provide credit services?
Small businesses need cyber insurance
So, there are plenty of reasons why a small business owner should worry about cyber security and purchase cyber coverage as an essential part of a business insurance package.
HSB’s Cyber Suite offers coverage and services
HSB’s Cyber Suite of data and information coverages and services can help protect small businesses and the data they keep. Visit our website to learn more about our coverage for identity theft, data breach, cyber attacks, and other cyber exposures.