In a recent survey 70% of Small Business owners say they are interested in Data Breach Insurance. The primary causes of small business data breaches were found to be Employee or Contactor mistakes, lost or stolen laptops, smart phones and storage media.
Seventy percent of the respondents believe sensitive information is more likely to be compromised when the data has been outsourced, but 62 percent do not have contracts that require third parties to cover all the costs associated with a data breach. At least 85 percent share customer and employee records with third parties such as those providing billing, payroll, employee benefits, Web hosting and IT services.
When asked which type of lost or stolen data was more likely to harm their business, 70 percent agreed the loss of personally identifying information was more damaging than confidential company data.