Data breaches don’t just target credit card information or social security numbers. If your business stores ANY form of data, you are at risk for a data breach.
What’s worse is the cost of mitigating a breach once it occurs. Think about the struggle it would take to report the breach to customers, rebuild your networks and replace lost data; not to mention having to rebuild your reputation with your customers. Your business may need to close after a breach, losing precious time and resources.
The latest statistics show that the cost to replace a client “record” after a data breach is over $200 each! How can you afford not to be protected?
How can cyber liability insurance protect you?
Use the yellow hot spots and explore how cyber liability insurance can help protect against common risks.
Cyber Liability Coverage
The Internet has spun a whole new web of liability exposures. E-commerce, social networking, cloud storage and other technologies bring great benefits to large and small businesses alike. But with these benefits also come challenges, including protection of privacy, data and financial information of your customers. If this information is lost, stolen or compromised, your company is at risk. In fact, you may even be required by law to alert those impacted by the breach and to pay for any financial loss incurred.
Cyber liability coverage offers protection due to unauthorized access of electronic data or software within your network. It also provides coverage for spreading a virus, computer theft, extortion or any unintentional act, mistake, error or omission made by an employee. This coverage is quickly becoming more and more important as you embrace technology to help run your business.
If your company is faced with a data breach or cyber-attack, you may be forced to cover breach-related expenses such as crisis management, hiring a public relations firm to manage a data breach incident, costs associated with forensic analysis, the cost of repairing and restoring computer systems if there is a virus that destroys business software and data, and the loss of business income resulting from a data breach.
First-party coverage will insure your business for losses to your own data or lost income or for other harm to your business resulting from a data breach or cyber attack. This coverage will pay you for things like business interruption, the cost of notifying customers of a breach, and even the expense of hiring a public relations firm to repair any damage done to your image as a result of a cyber-attack. Having this funding available in the event of a crippling hack can keep the lights on till you’re able to resume your normal business operations.
What would you do if an email virus impacted the operation of your database and prevented you from serving clients for a day or more? Or what if a hacker or cyber-criminal caused a system outage or extended downtime, leaving your business inoperable? These and other events can destroy your ability to serve clients and bring in revenue, which can have a major long-term impact on the viability of your business.
Business interruption insurance compensates you for lost income if your company cannot operate as normal due to disaster-related damage that is covered under your commercial property insurance policy, such as data breach or cyber-attack. Business income insurance covers the revenue you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.
If your business handles sensitive customer data (such as email lists, credit card records or other files), data breaches pose a serious threat to your financial stability. A lawsuit resulting from a data breach means your business is responsible for paying legal fees, court-ordered judgments or settlements and other court-related costs.
Third-party coverage protects you in the event of a lawsuit brought by a customer or partner for a data breach that your business' actions or negligence allowed.
Regulatory Claim Coverage
If your business experiences a data breach or violation of confidential information during regular business operations, you may be found in violation of state or federal privacy laws and be required to pay fines for the violations or other regulatory issues.
You may be eligible for regulatory claim coverage which would offer protection in response to proceedings related to state disclosure laws and other governmental actions that can result in defense costs, fines and/or penalties. Coverage does vary and may be restricted by state law.
Consider the risks below. If you answer “Yes” to any of them, you have a Cyber Risk!
- Does your business collect and/or store information such as social security numbers, name/address/phone, medical records, payroll, etc?
- Do third party vendors have access to any of the data listed above?
- Do you have a website, social media site, or mobile device users?
- Do you store electronic data on servers on in the cloud?
- Do you develop original content like newsletters that would be sent to your customers in print format?
- Do you generate revenue from online sales or process credit card transactions?
- Does your office have a wireless network?
That’s why we recommend Cyber Risk protection. For an economical price, you get the peace of mind you need that someone will be there to help you when disaster strikes.