60% of Small Businesses Fail After a Data Breach

Do you need any more incentive than that to purchase Cyber Risk insurance?

Small business insuranceBelow are some eye opening statistics presented by the U.S. House of Representatives Small Business subcommittee on health and technology:

  • 75% of small businesses believe that they are safe from hackers.
  • 20% of all cyber attacks hit businesses with fewer than 250 employees.
  • 60% of small businesses will shut down after a cyber attack.
  • The average cost of a data breach is $6.75 million at an average of $214 per compromised customer.

The cost of a small business failure due to cyber attack is not just measured in terms of losses to the local economy (revenues and jobs), but includes the costs associated with the theft of trade secrets and intellectual property.

Cyber Risk insurance is becoming increasingly inexpensive each year. In the past, it could only be purchased on a stand-alone basis at a cost of approximately $,500. However, it can now often be added to an existing Business Owners Policy by endorsement for about $500. More and more online Cyber Liability vendors are popping up with highly discounted offerings.

Source: Small Business 2013/03/21 Small Businesses Don’t Recover From Cyber Crime

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Categories: Cyber Liability, Small Business

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