Small Business Owners: A single Data Breach Can Devastate Your Life’s Work
By Ken Rutsky, Account Manager
February 17, 2017: fast food chain Arby’s reveals that payment systems in a large number of their corporate locations were breached between October, 2016 and January, 2017, exposing credit card data to hackers.
March 19, 2017: reporters find that customer data from retailer Saks Fifth Avenue – including email addresses, phone numbers, and IP addresses – has been posted in an obscure corner of their website in plain, unencrypted text.
April 25, 2017: fast food chain Chipotle notifies customers that their credit card data may have been compromised if they made purchases between March and April, 2017.
May 12, 2017: clothing retailer Brooks Brothers informs shoppers who made purchases at their retail and outlet stores between April, 2016 and March, 2017 that they may have had their credit card information stolen.
Four data breaches reported in four months…and those are just four of the largest from the first half of 2017. These compromises, each of which could have affected many hundreds of thousands of people, were widely covered in the news due to their sheer scope. Because they get all of the attention, many people, including many small business owners, believe that data breaches are something only the big corporations need to worry about: why would a hacker go after a minnow when they can land a whale?
Sorry to say it, but this belief couldn’t be further from the truth.
The truth is, small- to mid-size businesses account for about 60% of all data breaches worldwide. Due to the volume of credit card and customer data they typically handle, retailers are considered an especially plum target for a cyberattack. Smaller retailers, which tend to place IT security low on their list of priorities, can be devastated by a single breach.
Consider this: over 28,000 records are stolen in an average cyberattack. The liability and monitoring costs for a single record averages $200. Do the math. Do you have $5.6 million on hand to cover the costs of a data breach? It’s no wonder 60% of small businesses that have experienced such an attack go out of business.
A general liability policy is not enough to protect your business from such a nightmare scenario; such insurance primarily covers property damage, and will leave you on the hook for first-party losses and third-party claims. You need a comprehensive cyber insurance policy for maximum coverage, one tailored specifically for retail businesses.
The Retail Council has been engaged in a search for such a solution on your behalf for many months, and we are proud to announce that our search has borne fruit: announcing ShopLock Cyber Insurance, offered exclusively to Retail Council members in association with JLT Specialty Insurance Services and Chubb Insurance.
ShopLock is a comprehensive cyber insurance program for the retail industry. Coverages include:
- Cyber Incident Response – legal fees, notification costs, etc.
- Business Interruption and Extra Expense – loss of profits and expenses resulting from interruption of servers, databases, etc.
- Digital Data Recovery – recovery of lost/damaged data or hardware
- Network Extortion – ransomware or hijacking attacks
In addition, third-party liability coverage will help pay for credit monitoring and compensation for compromised clients, assessments resulting from payment card breaches, regulatory action, and legal costs for copyright/trademark infringement on electronic, social and printed media. Cyber crime endorsements can also be added to the base policy.
The Retail Council has worked closely with JLT to ensure ShopLock Cyber Insurance is affordable. To that end, we are offering this coverage with discounted premiums available only to our members! For a relatively small price, you will be able to rest assured that your business is protected against the damage wrought by malicious actors employing malware, ransomware, phishing schemes, plain old theft, and more. Don’t let your life’s work be destroyed by the click of a mouse; get ShopLock Cyber Insurance now.
You can reach Ken at (800) 442-3589 or firstname.lastname@example.org.
JLT Specialty Insurance Services, Inc.