Technology is changing at a rapid pace, in fact you may say it’s running at “ludicrous speed.” For those fans of the movie Spaceballs, Rick Moranis has a great line where he says, “light speed is too slow. We’ll have to go right to ludicrous speed.”
This exemplifies the changes in technology that small businesses face every day. It’s disruptive & changing at a “ludicrous” pace. For some that is a great thing providing new market segments (IE. Uber, AirBnB etc). For the Small to Medium Sized business that also comes with a host of challenges:
Shocking Truth #1- 20% of all cyber attacks hit businesses with LESS than 250 employees; roughly 60% of those businesses close within 6 months of the attack.
That’s enough to make your eyeballs spin right there! Think about that almost 1 in 4 businesses hit by a cyber attack have LESS than 250 employees, & within 6 months of the attack close their doors, going out of business never to open again. Cyber attacks targeting small businesses are on the rise. Attacks on PII (Personal Identifiable Information) of which your business likely has TONS of is a prime target.
PII is data is any data that could identify a specific individual. For example, your business may have dates of birth, address info, credit card payment and social security numbers in its database. A hacker could get into you network, steal this info & expose you to all sorts of potential headaches, costs, & liability.
The shocking truth about this is that 2 of the largest claims that occurred in 2013 were to SMALL businesses with revenues less than 50 million dollars. The two largest claims cost over 1M each in terms of legal & regulatory fines. What’s more, is the impact on the reputation of the small business and the trust that was breached with their clients and community at large.
Shocking Truth #2- The Average Breach of Data costs OVER $200 PER RECORD. 
You do the math. Think about how many records you have in your database, on your server, on the cloud, on a Dropbox, or Google Drive file. Data is everywhere!! According the 2014 Net Diligence Cyber Claims study, the AVERAGE payout amongst all claims involving technology/cyber attacks, was over $700,000!  That would not be a fun check to write for sure.
According to a recent Verizon study the 3 major sources where these Cyber claims come from:
Often times these Cyber attacks can pop up on one of your employee’s emails, as a “cool application” or an offer to download as advertisement. See example below from Symantec study showing an example of a Social Media solicitation that wound up being a scam for a virus. Would your employees know how to handle this?
Shocking Truth #3: Hackers aren’t the only ones who cause data breach. Your employees can be a main culprit.
Lost or stolen data can come from INSIDE your company just as much as outside of your business. This could be an employee who takes a laptop home over the weekend that gets stolen. Or an employee who inadvertently writes a password down that gets picked up by a disgruntled employee who then sells the info to a 3rd party as a retaliation for a bad performance review. The next thing you know, all of your client files are locked due to a virus and you are being asked to pay the sum of $200,000 via an unknown email to “unlock” your files. This is the height of a cyber terrorist attack on your business. Think it doesn’t happen?? Think again…
Data breaches that occur from the inside can be a nasty attack but are often caused by human error. Approximately 40% of all of the breaches are now being caused by in-house employees. We all make mistakes at times and errors can happen. Although you can work to minimize your exposure as much as possible to the outside world, training and educating your employees will take a big step in the right direction to minimize the risk from the inside.
Shocking Truth 3.5# Cyber liability insurance protects your business in the event of a cyber/technology attack….AND it is not as expensive as you think!
Having a sound IT department with the best firewalls, virus protection and malware prevention in place is only one piece of the puzzle to safeguard your business. Often times this provides a false sense of security. We have seen some of the largest, most well funded Fortune 500 businesses have their data breached over the past several years. Hackers are always one step ahead of the curve.
Cyber liability and Data Breach Insurance is an option that many businesses are seeking to cover this HUGE liability exposure.
Common coverage’s include protection for:
Policy premiums range depending on the size of the business, but start at $1000/year.
Keep your business protected, and moving with the times at “ludicrous speed.”
Call or email today for a proposal tailored to your business.
 Forbes.com 2013: Your business is never too small for a Cyber Attack by George Westerman
 Net Diligence 2014 Cyber Claims Study
 Ponemon Institute 2014 Cost of Data Breach Study
 Net Diligence 2014 Cyber Claims Study
 Verizon Study: Understanding the Real Risk of Data Breach & 2013 Verizon Data Breach Investigation Report
 BizHumm; Think Your Too Small to Get Hacked