One study found that 43% of cyber attacks target small business, and 60% of small companies go out of business within six months of a cyber attack.¹
Business owners are also required to protect their customers’ personal information. In 47 states, and the District of Columbia, businesses are required to notify individuals of security breaches involving personally identifiable information.²
As evidenced by news of large-scale data breaches, online hacking has become another form of risk that businesses now face everyday. Like many risks, businesses can insure themselves against the financial damage a cyber-attack may inflict.
Cyber liability insurance may cover a range of risks, including:
Cyber liability insurance is fairly new so expect a wide divergence of coverage and costs. It may be purchased separately or as a rider to your current business insurance policy. Be prepared to comparison shop to get a better understanding of coverage and costs.
Small business owners might also keep in mind that “an ounce of prevention is worth a pound of cure.” There are steps you can take to protect your business from becoming a cyber victim.
Consider steps to protect your data.
As obvious and simple as these precautions may sound, some businesses fall victim to cyber-attacks because of their failure to take them.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2017 FMG Suite.