Why Small Businesses Can’t Afford To Ignore Cyberinsurance

Three out of five small-to-midsized businesses (SMBs) permanently shuttered their doors within six months of being hit by a data breach or hack, Cybercrime Magazine reported in its first annual cybercrime report six years ago.

Recent cybersecurity statistics indicate the SMB market remains vulnerable:

Four out of five small businesses were victims of a security or data breach last year, Tech Xplore reports;

Employees of small businesses experience 350 percent more social engineering attacks than those at larger enterprises, StrongDM reports;

Half of all SMBs say it took them 24 hours or more to recover from a cyberattack, according to StrongDM;

More than three-quarters of small businesses say their breach cost them at least $250,000, according to the Identity Theft Resource Center, and an unprecedented 37 percent say they lost more than $500,000;

88 percent of ransomware attacks target SMBs, per Viking Cloud.

SMBs can’t afford to ignore cyberinsurance, a variety of coverages designed to protect businesses from financial losses related to cyber incidents, which are not typically covered under traditional business insurance plans.

Charter Capital, America’s leading invoice factoring company for more than 20 years, breaks down the various types of cyberinsurance coverage available to SMBs – including cyber theft, data breach response, business interruption, ransomware and extortion, network security and privacy liability, regulatory defense and penalties, and media liability.

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