If you conduct any business electronically, from accepting debit cards as payment to storing customer data in your computer network, you are at risk of a security breach. Hackers are increasingly targeting small to medium sized businesses, because they often don’t employ the most high-tech security measures used by larger businesses.
If your business is a target of such an attack, what are the consequences for you?
- You may be subject to lawsuits or government regulatory action
- You may be fined for violations of the Payment Card Industries Data Security Standards
- You will spend about 400 hours resolving the problem, according to the Federal Trade Commission
- You can expect to spend around 194 dollars per lost record to resolve the problem.
- If your personal credit is ruined due to the event you can lose the ability to obtain business loans.
Contrary to common belief, your General Liability insurance policy will not cover the damages created by a security breach. You, the business owner, will be responsible for notifying customers of the breach, making amends with them, paying attorneys’ fees in the event that you are sued, and paying for fines, court costs, or settlements. Since small to mid-sized businesses usually don’t have the funds to cover all of these costs, a single data breach could effectively wipe out your company.
Luckily, there are steps you can take to prevent such a disaster:
- Consult with an Information Technology expert, and establish the proper safety protocols in your computer network and payment systems.
- Educate employees on risky habits that can put the entire company at risk.
- Develop strict standards for storing and handling information, and enforce them.
- Purchase Cyber Liability and Data Security insurance.
Cyber Liability and Data Security insurance will cover the expense of any lawsuits arising from a data breach. You will also receive breach management services after an event, including public relations, notification of affected customers, forensics services and more. Thanks to your insurance policy, your business can be salvaged, the personal damage repaired, and customer relationships restored.
For more information on Cyber Liability and Data Security Insurance, call Laura Bramer at 951-253-4119 or email her at email@example.com