As a business owner, here’s what you need to know about cyber attacks and data breaches in 2018.
Contrary to what you might assume, every business (regardless of size, scope, or industry), is at risk for a data breach. In fact, American businesses lose millions of dollars every year as a result of these digital risks. If you do not have the proper business insurance in Astoria, New York to address the risk of data breaches, then it’s important to understand just how serious this risk is. Here’s what you need to know about cyber attacks and data breaches in the present day.
Cyber Attacks Are More Common Than You Think
The modern business world requires businesses to rely on digital devices and be connected at all times. Unfortunately, this increased connectivity translates into an increased risk for cyber attack and data breach. According to current data, the rates of cyber attack are already up 40% as compared to 2017. This means that business owners need to be more concerned about this risk than ever.
Data Breach is Extremely Expensive
Another thing that you need to understand is that dealing with a data breach will cost your business a significant amount of money. In the event of a data breach, your business will be responsible for paying the expenses associated with informing your clients, recovering compromised data, repairing affected computer systems, and so on. Additionally, your business might also have to deal with the cost of client-filed lawsuits. While larger businesses and corporations might have the capital to move past a data breach, smaller businesses may be forced to close as a result of this drain on their finances.
There Are Other Consequences
Monetary losses aren’t the only consequences that your business will face after a data breach. For instance, your business’s reputation will be tarnished after a major cyber attack. This can lead to a distrustful and unsatisfied client base. Additionally, you will likely lose customers and business opportunities as a result of a data breach. Finally, victimized businesses may also have to deal with their competitors referencing the data breach as a means of promoting their own companies.
When you understand everything that’s at risk, you can see why it’s so important to protect your business against the risk of cyber attacks and data breaches. Remember, one of the best wats to protect your company is by securing the right business insurance in Astoria, New York. For assistance with your commercial coverage, contact the experts at 01 Insurance today.