For the average American company, the cost of cyber breaches are not as much as estimated by experts. Researchers from RAND Corporation found that the average cost of a breach was $200,000, which is less than 0.4 percent of a typical company’s annual revenue. That figure is about equal to a company’s annual information security budget.
Many businesses do not understand just how important cyber insurance is or why they need it. Businesses that store personally identifiable information (PII), personal health information (PHI) and/or personal financial information (PFI) are most often targeted. The financial and reputational damage cyber crime has on small businesses can be too much to bounce back from without a comprehensive cyber liability insurance policy.