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7/12/2012 - Overwhelming majority of business owners not worried about data breach

Most small business owners are not worried about a data breach.

Because many professionals believe the chances of their businesses' data files being hacked are slim, a considerable number of them have not implemented the businessowners insurance protections that can help them recover, a new analysis indicates.

The survey, which was conducted by polling company the Pert Group, found that 85% of small business owners believe they are unlikely to experience a data breach of their information systems. As a result, many haven't put data protection techniques into place. For example, less than half of business owners consistently locked and secured sensitive customer data, 48% used passwords and encryption technology and just 44% had a privacy policy.

"Given the potential business and reputational costs of a data breach, it's important for business owners to have insurance in place to help them respond and recover quickly and effectively in the event of a breach," said insurance and underwriting expert Lynn LaGram. "As cyber criminals set their sights on smaller firms, it is important for business owners to take proactive measures to protect data and minimize the likelihood of a breach."

CyCurity® is a coverage plan Selective offers that can help business owners recover losses arising from electronic media liability and electronic information security. The product also provides coverage for security breach expenses. For more information, talk to an independent Selective agent.

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