Smaller businesses already have enough they need to pay for, so why should they add yet another cost to their plate? Well, it may not be so simple. The cyber liability insurance cost may add another $1,000 or so to the required payments of a small business, but it's important to compare this cost to the loss caused by a cyber attack.
Over a quarter of the number of cyber claims are related to a hacker attack, of which the average monetary loss is over $1,000,000. Viruses are the next most likely, which cost nearly $500,000. The least costly digital problem is a system glitch. How much do they cost on average? The claims alone are over $150,000. At the very least, your business could save over $100,000.
If the initial financial loss from a cyber attack isn't enough to concern you, the extended loss caused by customers leaving your business may be. Furthermore, the news of your loss can spread, making it more difficult to bring in new clients.
Ways to Reduce the Cost
There are a few different things you can do to ensure you get the lowest possible cyber liability insurance cost.
- Increase your cyber security and improve your training
- Work with the insurance company to get the right coverage for your business
- Adjust your deductible as needed