As hacking becomes more common, investing in cyber insurance may be essential in guarding against attacks on the internet for small businesses.

Cyber insurance is a growing trend. PricewaterhouseCoopers recently released a survey showing that 46 percent of businesses are covered by this type of protection. This is a good idea for small businesses, as the number of threats targeting these companies is growing all the time.  A 2010 study conducted by the U.S. United States Secret Service and a major mobile provider showed that 63 percent of all cyber attacks occurred against businesses with fewer than 100 employees. 

Moreover, the Ponemon Institute reports that when data breaches occur, the average amount of loss per business totals $5.9 million, not accounting for the loss of intellectual property.   

Dr Stan Stahl, the president of the Los Angeles Chapter of the Information Systems Security Association, recently asserted that small businesses need to keep up with the latest means of data protection. Speaking at the annual Information Security Summit, Stahl noted that "yesterday's defenses simply don't work against today's cyber attacks," adding that "the most effective defense requires that everyone play their part: senior management, IT staff and well-trained users."