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Home > Blog > Potential Costs of Small Firm Cyber Security Incidents
TUESDAY, JANUARY 24, 2023

Potential Costs of Small Firm Cyber Security Incidents

Glacier in Alaska

When cyber-attacks hit big businesses, expensive problems can result, but the company may be able to absorb the costs.

Small firms are in uncharted territory after a cyber-attack. On average, a cyber-attack can cost them anywhere from $120,000 to $1.24 million. Whatever the final price tag, it will represent a bigger threat to a small firm’s revenue and viability.

Costs associated with a cyber incident are many and mount up quickly:

  • Ransomware payments made to quickly release encrypted data or computer systems
  • Financial loss due to social engineering (criminals tricking targets into sharing security credentials or transferring money)
  • Forensic IT costs to determine the cause and extent of a data breach
  • Lost income due to business interruption
  • Cost of notifying third parties and providing credit monitoring or other compensation to affected individuals
  • Public relations campaigns and losses due to the business’s damaged reputation
  • Legal fees and court judgments

In 2019, 37% of small businesses affected by a data breach suffered a financial loss, 25% filed for bankruptcy, and 10% went out of business.

The cost of healthy cyber security pales in comparison to the cost of recovering from a cyber-attack—should recovery be possible.

Click Here to get a Cyber Quote

 

Lee

 
 
   Contact Me Today
   Lee Norcross, MBA, CPCU
   California License # 0D87292
    L Squared Insurance Agency, LLC ® DBA in California as
   L2 L Squared Insurance Agency, License # 0L93416

    Managing Director, CEO
    Click here to contact Lee Norcross, MBA, CPCU, CPIA

     (616) 940-1101 Ext. 7080

 
Posted 2:26 PM

Tags: cyber insurance, potential costs of cyber-attack
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