Ransomware is a BIG Problem for Small Business

Many agents are aware that there is are Commercial Cyber Insurance products available to protect small business.  However, these same agents are often reluctant to promote those products out of a lack of understanding of the need for small businesses to carry the coverage.  How bad could a cyber event be?

In truth, a cyber event can be very expensive and disruptive to a small business.  In particular, this is because so few small businesses take the protective steps to safeguard their files and other data that bigger firms take.  This makes them targets.

A ransomware attack can literally cripple a small business.  In this type of cyber breach a hacker takes control of a business' computers and systems and holds them hostage, often for a large ransom.  In some cases the hacker encrypts the data, other times the hacker simply denies access to the systems.  Either way, your business isn't running unless you bypass the hack, or pay the ransom.

Good cyber security insurance will pay a ransom for events like these.  

Some facts on ransomware:

  • Attacks are up over 40% every year
  • Downtime due to attacks is up over 200% (avg. is over 16 days)
  • Average ransomware payout is over $84,000

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