Here’s what you need to know about cyber attacks and data breaches in 2018.
Despite what you might think, every business is at risk for a major data breach. In fact, American businesses lose millions of dollars every year as a result of cyber attacks. As a business owner, it is important that you take this risk seriously. Here’s what you need to know about cyber attacks and data breeches in 2018.
They Are More Common Than Ever
In the current age of technological innovation and advancements, businesses are more plugged-in and connected than ever. However, this increased connectivity translates into an increased risk for cyber attacks. According to research, the rates of cyber attacks are already up 40% from 2017. This demonstrates that businesses need to be more concerned about this threat and be more serious about taking security measures.
They Are More Expensive Than You Might Think
Another thing you need to understand about data breaches is that they are extremely expensive. If your company is the target of a data breach, you would be responsible for the costs associated with informing your clients, recovering compromised data, restoring identities, and repairing affected computer systems. Additionally, your business might also have to deal with the expense of client-filed lawsuits. While larger corporations might have the capital to eventually recover from these losses, smaller businesses might be crushed under the weight of this financial burden.
There are Other Costs to Consider
In addition to monetary losses, cyber attacks can also have other ill effects on your business. For instance, your business’s reputation will likely be tarnished after a cyber attack. This can lead to a mistrustful client base and lost business opportunities. Additionally, you may have to deal with your competitors referencing your data breach as a means of promoting their own companies.
These are some of the things you need to know and consider regarding cyber attacks and data breaches in 2018. If you want to secure your company against this risk, it’s important that you have the proper business insurance in place. For assistance with all your commercial coverage needs, contact the experts at Contractors Insurance Agency today.