Well, how much would a cyber attack cost? It can’t be that bad, right? If you’re a business owner and you don’t have cyber security built-in or a cyber insurance policy, you might be thinking that a cyber attack is not going to cost that much money. It doesn’t really steal anything It doesn’t break anything it doesn’t burn anything down. 

Well, maybe not here is an article from CNET, from the end of July 2022, saying the typical data breach costs $4.4 million. Now, this is for a larger company. But it doesn’t change the fact that data breaches, cyber-attacks, and ransomware have actual costs for a company. You could look at the typical, expense for your type of company in your size and you’ll find that these data breaches are not cheap. They can cost hundreds of thousands of dollars easily at the bare minimum. And the single breach sometimes can put you out of business if you don’t have access to your accounts receivable where you can collect money, if your systems are down, or if you’re not able to process sales even for four or five days. Not only do you lose those sales but you lose the sales momentum where some of your customers may go somewhere else. Some of your employees may have a lack of confidence and they may leave or even if they stay they may not be as committed. 

So data breaches can be a deal breaker for a company. You want to be aware of the actual cost and whether you prevent it by cybersecurity or cyber insurance it’s important to factor in reality to your business risk evaluation.

Looking for more information?

A cyber liability policy can help cover your business and keep you updated with industry tips like this one. Get in touch with us today to learn more about cyber liability insurance coverage, or set up a no-obligation consultation with a commercial lines expert through TelaClient.com.