With recent data breaches of big-name stores, businesses all over are taking a deeper look into their security. All businesses need to be aware of the risks and the costs associated with a data breach.
Small businesses are especially susceptible as their security is often not as advanced as larger corporations. According to Verizon’s 2012 Data Breach Investigations Report, 70% of victims were “targets of opportunity.” This means that they were not specifically sought out, but were found to have an exploitable weakness that made their database easy to infiltrate.
A cyber loss event could expose your business to a variety of first and third-party expenses, including:
- Loss of income
- Restoration of computer hardware and data
- Computer and funds transfer fraud
- Notification expenses
- Credit monitoring services
- Damages to individual persons or companies
- Public relations campaigns
- Regulatory fines, penalties, and expenses
Any company that stores customer information such as addresses, emails, credit cards and other information is at risk and would benefit from cyber liability insurance. Contact a Wallace, Welch & Willingham representative for more information.