Three out of five small-to-midsized businesses (SMBs) permanently close their doors within six months of experiencing a data breach or hack, according to Cybercrime Magazine's first annual cybercrime report released six years ago.
Recent statistics highlight that the SMB market continues to be vulnerable:
- According to Tech Xplore, four out of five small businesses fell victim to a security or data breach last year.
- Employees at small businesses face 350 percent more social engineering attacks than those at larger companies, as reported by StrongDM.
- Half of all SMBs indicate that it took them 24 hours or more to recover from a cyberattack, based on StrongDM's findings.
- More than three-quarters of small businesses report that their breach cost them at least $250,000, and an unprecedented 37 percent say they lost over $500,000, according to the Identity Theft Resource Center.
- Viking Cloud reveals that 88 percent of ransomware attacks target SMBs.
Given these alarming statistics, SMBs cannot afford to overlook the importance of cyberinsurance. This type of insurance provides various coverages designed to protect businesses from financial losses related to cyber incidents, which are often not covered by traditional business insurance plans.
Charter Capital, a leading invoice factoring company in the United States for over 20 years, offers a breakdown of the different types of cyberinsurance coverage available to SMBs. This includes coverage for cyber theft, data breach response, business interruption, ransomware and extortion, network security and privacy liability, regulatory defense and penalties, and media liability.
