This blog has previously discussed the increase in data breaches as technology continues to become more prominent in the business world. Small and medium-sized companies can be especially vulnerable, and according to a recent survey, one data breach could force an organization to permanently shut its doors.
Even if you are a small business owner who has just one computer involved in daily operations, that could be the device that gets infiltrated. It is not good enough for company heads to simply rely on their organization's small size - high tech insurance is a good option for better business recovery.
The U.S. House Small Business Subcommittee on Health and Technology held a hearing Thursday on the topic of "Protecting Small Businesses Against Emerging and Complex Cyber-Attacks." Subcommittee chairman Chris Collins spoke at the event, citing a study that said more than three-quarters of small businesses believe their companies are safe from hackers. However, 20 percent of all cyber attacks hit small businesses with 250 or fewer employees.
The research also showed that 60 percent of small organizations will permanently close six months after hackers infiltrate their systems.
Another speaker was Dan Shapero, a CompTIA member and the founder of IT company ClikCloud. According to Shapero, the average cost of a data breach is $6.75 million total and $214 per compromised customer record.
What if your business was suddenly facing close to $7 million in recovery fees? Along with the financial burden, it can be difficult to repair one's reputation with customers. Even if companies are able to get back on their feet, a data breach can be devastating on numerous levels.
Depending on how intricate your technical systems are, various insurance policies could be applicable. Working with commercial insurance specialists can simplify the process, and ensure that you are able to find the best coverage for your business.