One of the major risks faced by any small business today is the imminent threat to your computer systems. Your computer system is your connection to the world and to your customers. In our highly connected online world, too, there have been recent moves toward bolstering security as well as taking a new look at the risk it poses.

A recent research report and survey done by a major insurance company revealed some startling findings:

• All of those businesses surveyed revealed that cyber security issues were becoming their primary focus in the coming years and that 30% of them expected to have to deal with some manner of cyber attack in the coming 12 months.
• A solid 40% of them have actually been victim to some manner of cyber attack or breach of their systems. These breaches were costing the average company in the neighborhood of $6 million for every breach of their cyber security. In addition, businesses of every size realized that their brand would take a serious hit to their reputation because of the attacks.
• While half of the businesses surveyed declared that they were going to commit more resources to the problem, half again as many stated that they had no idea what to do and have no strategic plan in place to mitigate the risk.
• While well over 60% of small business owners and CEO’s are worried about their exposure to this risk, a full 65% said that they do not currently have any cyber liability insurance coverage.
• While slightly over 70% of those surveyed stated that they have an operational strategy in place for a cyber attack, nearly 60% do not include cyber liability insurance as part of their overall security and risk management strategy.

As a small business, you are reliant for your livelihood on your computer systems and your online presence. What will you do if your third party credit card processing outfit goes out of business? How is the lost business, that cash flow, going to be protected? What if your systems are hacked and a deadly virus shuts you down for days, even weeks? What about your website? What about your social media? The interconnectedness of your online activity has become vital to your overall online and SEO marketing strategies. What if the server crashes? What if your sites are hacked and data is stolen or the sites are rendered inoperable?

These are the questions, and the risks, that you can begin to mitigate with cyber liability insurance. This is relatively new territory, especially in the courts, but everyone agrees that it is an exposure that needs to be eliminated.

The best thing any small business can do is to huddle with their insurance firm and lay out a plan of action. Data tends to be slim as the adverse publicity prevents many such attacks from becoming public. What you can do is to take an immediate inventory of your systems. See where it is strong, and see where it is weak. Identify your risks and get the cyber liability coverage that will be specifically tailored to your company and to your particular methods of operation.