High-profile cyber risk on companies such as Target and Sears has raised awareness of the growing threat of cybercrime. Recent surveys conducted by the Small Business Authority, Symantec, Kaspersky Lab, and the National Cybersecurity Alliance suggest that many small business owners are still operating under a false sense of cybersecurity. The statistics of these studies are grim. The vast majority of U.S. small businesses lack a formal Internet security policy for employees. Also, it is about a half have even rudimentary cybersecurity measures in place. Furthermore, only about a quarter of small business owners have had an outside party test their systems to ensure they are hacker-proof. Also, nearly 40 percent do not have their data backed up in more than one location.
Crime insurance was developed to deal with the limitations of other policies and extend protection to include coverage for a wide variety of wrongdoing. While you may think your business would never be the victim of theft. The harsh reality is that nearly every business can become a victim. In this day and age, thieves do not need direct access to cash to steal from you. Moreover, merchandise, supplies, and securities are all fair game. While standard commercial insurance provides some protection from criminal acts, they often do not cover losses resulting from fraudulent activities.