As a business owner, here’s what you need to understand about the risk of cyber-attack.
Contrary to what you might believe, every business faces the threat of a data breach. In fact, American businesses lose millions of dollars every year as a result of cyber-attacks. While having the right commercial insurance in Los Angeles, California
can help you protect your company, this isn’t necessarily enough. As a business owner, it is also your responsibility to fully understand the threat you are up against. Here’s what you need to know about cyber-attacks and data breaches.
They Are More Common Than Ever
In the modern world, businesses are more reliant on digital devices and internet connectivity than ever before. While this integration of technology makes business operations more efficient, this increased connectivity also translates into an increased risk for cyber-attack. The rates of cyber-attack and data breaches are increasing every year. In fact, rates are already up 40% as compared to 2017.
They Are Expensive
Another thing that business owners need to understand is that the cost associated with a data breach can be insurmountable. In the event of a data breach, businesses will be responsible for the costs of informing their customers, recovering compromised data, repairing damaged computer systems, and so on. Additionally, businesses must deal with the cost of lawsuits filed by parties affected by the data breach. While larger corporations might have the resources to move past a cyber-attack, smaller businesses might be unable to handle the financial strain.
There Are Other Consequences
In addition to the financial costs of a data breach, there are other consequences as well. For instance, businesses will have to deal with a damaged reputation after a major data breach. This could result in customer mistrust and dissatisfaction, loss of business opportunities, and an inability to form useful partnerships. Additionally, affected businesses might have to deal with their competitors using the recent data breach as a means of promoting their own companies.
This is what you need to know about cyber-attacks and data breaches. Remember, one of the things you can do to protect your business against this threat is get the proper commercial insurance in Los Angeles, California
. To find the right policies to meet your needs, contact the experts at Fuller Insurance Agency in Southern California. We are ready to get you covered today.