Many think of data breaches as being a problem of large companies, but the fact of the matter is one in three documented data breaches happen in companies with less than 100 employees. Of those data breaches affecting small businesses, 60 percent close as a result within six months following the breach. If your business handles customer data or processes payments online, you are at risk.

Data breaches can occur for a variety of reasons. Around 43 percent of all cyber attacks target small businesses. While this is worrisome, even moreso is the reality that more than half of all data breaches occur from system glitches and human error within your own business. In this highly digital age of business, there is too much vulnerable information at risk. Cyber Liability Insurance helps protect your assets. (For more statistics on small business and data breaches click here. )

The reality is, data breaches can be disastrous for a small business if there is not sufficient cyber liability insurance in place to mitigate costs. The low premiums paid for Cyber Liability Insurance are nominal compared to the potential repercussions of a data breach, which include business interruptions, security overhauls, concessions to customers (such as credit monitoring services) and in some cases bankruptcies and business closures.

Unfortunately, in an effort to save a few dollars, some business owners decide to opt out of the Cyber Liability Insurance included in their Business Owner’s Policy. This is a big mistake! In fact, if you store any sensitive data online, it may be a good idea to consider adding more comprehensive Cyber Liability Insurance to help cover the real costs accumulated should a data breach occur.

Cyber Liability Insurance will help protect your business should you fall victim to a data breach, but there are also some things you can do to lower your risk of a data breach occurring in the first place.

• Keep only necessary pieces of customer information.
• Restrict access to sensitive data to those who have been properly vetted and trained.
• Use secure passwords on all computers and sensitive files.
• Keep security software up to date.
• Manage use of portable devices.
• Cross-shred all documents containing sensitive information.

Data breaches are an unfortunate reality of business these days. As more and more systems become automated and the increasing amount of data stored online, it is important to consider your risk for a data breach. By taking the necessary precautions to protect information, and also having the safety net of Cyber Liability Insurance in place, you can avoid the disastrous toll a data breach can take on a small business. Contact ustoday for more information of protecting your business with Cyber Liability Insurance.