Hacks, data breaches, ransomware – we see these issues in the news often, but are they really a threat to your business? Statistics prove cyber liability is a real risk for any business regardless of size, and this risk grows exponentially annually.
How Vulnerable Is Small Business?
It isn’t just mega corporations at most risk. 43% of U.S small businesses were victims of cyberattacks. They lack the resources of big business and are more easily accessed by e-commerce attacks, malware, phishing, and ransomware.
The average cost of a data breach at $740,000. Despite security advances, it is still impossible to safeguard your business through technology alone. The diversity of stacks and the frequency of attacks continue to grow exponentially, and security measures can’t keep pace.
Consequently, it makes sound financial sense to take additional precautions. A cyber insurance policy helps you offset the costs associated with a cyber-security related event, such as a breach, hack, or ransomware.
What Does It Cover?
Cyber insurance typically covers expenses related to first and third-party claims. Each carrier creates their own policies, but most offer the following reimbursable expenses:
If a breach or hack occurs, an investigation is necessary to determine the cause(s) and to prevent the same form of attack from happening again. Investigations often involve a security firm, as well as coordination with legal entities, regulatory, and financial agencies.
Privacy & Notification Costs
All 50 states require compromised companies notify their customers and affected third-parties. Some also require businesses to provide credit monitoring services to affected customers too. Failure to provide notification can lead to civil action, penalties, and fines.
Most cyber insurance policies include coverage similar to an errors & omissions policy which protects you from financial losses caused by negligence and other issues.
Policies can also reimburse you for losses caused by business interruption, downtime, recovering lost data, cleaning or replacing infected devices, and crisis management, including restoring your company’s reputation. Recovering from a cyberattack often includes hiring additional staff and a public relations firm, and it takes time.
Lawsuits are a common occurrence after a data breach when it releases personally identifiable information, intellectual property, or trade secrets. Cyber insurance can pay substantial legal costs, settlements, fines, and penalties.
Your Business Policy Does Not Protect You
Your standard Colorado business insurance policy does not protect you from cybercrime. If your business stores and maintains customer information, uses the cloud, or collects online payment information, cyber insurance is essential.
Let Young Insurance tailor a cyber liability insurance policy to meet your needs and protect your financial interests. You need expertise to find an appropriate product. We do the legwork, understand insurance technicalities, and access the best possible products at the most reasonable rates.
Data is one of your company’s most valuable assets and cyber liability insurance is a reasonable, affordable precaution. Contact us – we’re here to help.