Every business needs to be insured. It doesn’t matter whether you have a high street store or one that is purely online, not having a sufficient level of cover to protect both yourself and your clients is an unnecessary risk. The fact that you can buy cyber insurance cheaply online is further evidence that every internet business should have adequate protection against the unknown.
We want to show you 3 reasons why cyber insurance is vital for any business that operates online.
Data Breaches Happen Regularly
So you might have a fancy firewall and anti-virus system installed and you might have what you think are secured servers that store details about your clients. This is all well and good but data breaches happen all the time.
Let’s look at some stats.
81% of large businesses and 60% of small companies in the UK suffered some form of cyber-attack in 2013. This was either an attempt at gaining unauthorized access to data or a full blown invasion with details stolen. In fact, a small business in the UK will lose between £65k – £115k on average as a direct result of a security breach
Both Big And Small Businesses Are Vulnerable
Just recently JP Morgan, a leading financial services firm with interests across the globe, was the victim of a data breach that saw 76m customers being exposed to spam emails.
For hackers who want to access data it doesn’t matter how big or small the business is – if they want to steal email addresses and customer information then the size of the company isn’t going to put them off.
This is why it is even more important for small businesses to be covered. They often don’t have the resources themselves to cover any liability that can arise from a malicious attack but buying cyber insurance can provide this protection.
A Traditional Business Insurance Policy Isn’t Enough
The opinion of some businesses is that if they have traditional business insurance then why buy cyber liability insurance? Well the simple answer is that most traditional forms of business insurance just don’t cover cyber-attacks and data loss.
Only 35% of small businesses in the UK have sufficient cover to deal with data loss or a security breach. That leaves 65% of small businesses that don’t.
They are putting not only their customers at risk but also themselves too.
If you run a business, whether it is big or small, and you are pondering the question ‘do I need cyber insurance?’ then the resounding answer is yes. There is no point in putting yourself or the people that put their trust in you at risk.
We will leave you with one more statistic.
The cost of cyber theft and data loss to UK businesses is estimated to be around £21bn per year. That is bigger than the GDP’s of Paraguay and Jordan. Getting a cyber liability insurance quote will not only set you on the path to protecting your customers but will also preserve your businesses’ own reputation as well.