Shop Small is a nationwide movement that celebrates small businesses every day and helps communities thrive and stay vibrant. Small Business Saturday is a whole day specially dedicated to supporting small businesses across the country, celebrated each year on the Saturday after Thanksgiving! Anyone planning to go Black Friday shopping and then shop small on Saturday?
Since Small Business Saturday’s start in 2010, consumers have reported spending an estimated $103 billion across all Small Business Saturdays combined. WOW! I wonder how much more revenue is being made from online sales now compared to when it started nine years ago? I don’t know that, but I bet it’s a lot more…and that brings me to the purpose of this blog.
Many small businesses have an online presence and even sell products online now. Let’s start with possible reasons business owners think they don’t need to buy cyber insurance:
- It can be complicated. It’s not an easy coverage to understand or explain.
- Some may think they don’t need it. They might say “I’m a small business, only big businesses need it,” or “I have a firewall, that will protect me.”
- It’s not mandated. Governments and lenders are not requiring companies to carry the coverage.
Those are all fair judgments, BUT…let’s think again. Why does your business need cyber coverage? Well, if you have a computer system and maintain data on your customers and/or your employees, you need cyber insurance for protection!
Here are some statistics:
- The average ransomware in 2018 was more than $116,000. By the end of the 2019 first quarter, the average had increased to $224,871 (Ransomware is a type of malware that prevents or limits users from accessing their system, either by locking the system’s screen or by locking the users’ files unless a ransom is paid).
- Small businesses reported 63% of all ransomware incidents in 2019.
- 43% of all cyber attacks are aimed at small business.
- It can take up to 6 months to detect a breach.
- The global cost of online crime is expected to reach $6 trillion by 2021.
These are some scary numbers!!
What does cyber insurance cover? This can vary greatly from one carrier to another, but the majority will provide some type of resource to respond to:
- Breach of personal information (if your customers’ private information is compromised)
- A computer attack
- Cyber extortion (a hacker holds your companies data hostage for ransom)
- Defense and settlement costs
- Identity recovery
- Liability for third parties (those that sue you due to the attack/breach)
And that’s just to name a few. Cyber insurance provides a variety of coverages for a small premium, compared to what it could cost your small business faced with a cyber attack. To learn more about cyber insurance for your small business, watch this video:
Please contact your local independent agent to see how cyber insurance can protect your small business.
Happy Thanksgiving and Shopping!
The information above is of a general nature and your policy and coverages provided may differ from the examples provided. Please read your policy in its entirety to determine your actual coverage available.
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