Being able to conduct business online can be a fantastic advantage for small businesses. It’s where they can level the playing field against larger corporations, because technological savvy and pure hustle can help a small company overcome a lack of physical resources or capital. Unfortunately it can also pose a great risk, as malicious attacks on websites is rampant.
A data breach occurs when an outside party penetrates a computer system to perform a malicious action. These actions can include downloading personal information, such as Social Insurance Numbers or payment card information, or installing code such as ransomware, which renders the victim’s systems unusable unless the perpetrator is paid large sums of money.
Once a company has been subjected to a data breach, the costs escalate rapidly. They will need to recover lost or compromised data, repair or replace damaged hardware and infrastructure, and face regulatory fines and legal action from individuals whose data may have been exposed.
Cybercrime is one of the largest threats to businesses today. IBM reports that the average current cost of a data breach to Canadian companies is 6.94 million dollars. A 2022 report by Coalition, a major market in the cyber insurance space, indicated a 40 percent spike in attacks on small businesses over the prior year, with ransomware claims averaging upwards of 1.8 million dollars. These are just a couple of examples of the financial hardships cybercrime can inflict on a business.
Is your organization able to withstand that kind of attack? Many small-to-medium businesses simply wouldn’t. Fortunately, cyber insurance provides a solution to mitigate the damages incurred from a cyber attack.
Despite being a relatively new insurance product, the experts at AIM have amassed a wealth of knowledge and coverage options for businesses seeking protection against the potentially massive losses from cybercrime. The services we can provide include offering a cyber security profile to outline potential vulnerabilities, as well as rapid response in the event of a breach. To learn more about the cyber insurance products best suited for your business, reach out to AIM today.
Helping you conduct business online safely, that’s the AIM!
