A Data Breach Can Be Devastating!

In 2011, at a Senate Arms Service Committee, former CIA Chief Leon Panetta said, “The next Pearl Harbor we confront could very well be a cyber attack that cripples our power systems, our grid, our security systems, our financial systems, our governmental systems.” Panetta is actually on record for speaking about the dangers and real possibilities of a cyber attack on several occasions. Despite what many claim were failed attempts by Panetta to push cybersecurity legislation, the reality of more and more cyber attacks today has many wondering if there is anything than can be done to stop or thwart such an attack.

As a risk manager, the risk of a cyber attack or data breach for my existing and potential clients is my number one concern. Cyber liability coverage is the only answer for business owners of all sizes, especially small businesses. Many business owners are under the false belief that only big businesses or large corporations have to worry about cyber attacks or a data breach; however, that’s just not true. In fact, small businesses are more likely to suffer a cyber attack or data breach because they lack the funding and infrastructure to hire an in-house risk management team to help set policies and procedures to protect them against such an attack.

Alarming statistics provided by the Small Business Authority reveal that small business owners just don’t understand the real threat of a potential cyber attack. In 2012, a survey on small business owners by the National Cyber Security Alliance and Symantec stated that 77 percent of small businesses say their company is safe from cyber threats such as hackers, viruses, malware or a cybersecurity breach. The interesting part of the findings, however, is that 83 percent admit to having no formal cybersecurity plan.¹

If your business suffers a data breach without existing cyber liability coverage there’s a good chance you might not be in business much longer. Government consequences and the financial impact are usually too much to handle for a small to medium size business. Fees including a forensic examination and notification of third parties can be quite costly and just the beginning of your problems. A great risk manager can walk you through and explain the need for cyber liability coverage.

¹ http://www.thesba.com/2012/10/31/small-businesses-show-lack-of-concern-for-cybersecurity/

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