Risk Of A Fire Low… Risk Of A Cyber Attack High

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Believe it or not, a small to medium sized business has a greater chance of having a cyber attack than it does of having a fire. While the headlines are filled with the most recent cyber attacks on large companies including Anthem Health, Sony, Staples, Home Depot and JP Morgan Chase, hackers also target businesses with less than 50 employees.

According to Symantec, in 2013, the average annual cost of cyber attacks to small and medium-sized businesses was nearly $208,000. Many times a small business does not have the recourses to respond effectively, and about 30% of small businesses are forced to close as a result of a cyber attack. Almost every state now has laws regarding breach notification and identity theft insurance requirements once your business has had a cyber breach.

Cyber Facts For Small Businesses

According to a study by Staysafeonline.org, small businesses are a few steps behind in cyber risk and safety.

  • Two thirds (67%) allow the use of USB devices in the workplace.
  • 77% do not have a formal written Internet security policy for employees.
  • Only 50% say that all of their machines are completely wiped of data before disposal.

Here Are Some Warning Signs Your Business Is At Risk

  • Poor or weak passwords
  • No formal computer use policy
  • Lack of up to date computer security programs
  • People leaving computers on at night
  • No client information storage policy or protocols

Cyber Insurance Options

Most insurers have excluded cyber risks from more traditional insurance policies such as Commercial General Liability (CGL). Some may offer a small amount, but it generally will not be enough.

There are many new products on the market that can provide the needed protection. Call our office for more information.

March 6th, 2015 by Partners Risk Services