Cyber liability insurance provides coverage for certain losses incurred as result of data breaches. When customer data is compromised, it's usually not arbitrary or otherwise public information being targeted. Credit card data, names, phone numbers, addresses, driver's license numbers, health records, and even social security numbers can quickly find themselves in the wrong hands with a few strokes of the keyboard. Attacks can vary from malicious assaults on your physical servers to phishing scams that solicit sensitive data from individual users. Cyber liability insurance can protect your company from a range of cyber attacks.
The extent of cyber liability coverage you may need will differ from business to business. At minimum, cyber liability insurance helps companies comply with state regulations that require a business to notify customers of a data breach involving personally identifiable information. Cyber Liability policies generally cover indemnification for legal fees and expenses, provide customer notifications in the event of a breach, and include the option to monitor the information of anyone impacted for a specified period. Policies may also cover costs incurred in the recovery of compromised data or the repair of damaged computer systems.
Aside from basic cyber liability coverage, cyber liability policies may include coverage for Website Media Content Liability, Regulatory Defense and Penalties as well as PCI Fines, Expenses and Costs. For example, as your business expands into the digital and mobile space, our Website Media Content Liability coverage addresses the risks associated with any violations of privacy, plagiarism or piracy, copyright and trademark infringement, alleged defamation, libel, or slander relating to your website.
Think your small business is safe from hackers? Think again. Cyber crooks target small businesses at a higher rate than larger businesses. The 2018 Verizon Data Breach Investigation Report found that 43% of cyber attack victims were small businesses. 60% of these businesses never reopened after they were hit with by a cyber attack.
According to NetDiligence’s Cyber Claims Study, the total cost of cyber and privacy-related claims topped $114 million in 2016. Personally identifiable information was the most reported data breach, with credit and payment card information being one of the most frequently stolen pieces of data. Maintaining cyber liability insurance will help keep companies operational after an attack.
So why do cybercriminals seek out small businesses? They're often easy targets. Small businesses are often prey for identity thieves because they typically have less security in place than larger companies. Don't let your business be a target! Set them up for success with Cyber liability insurance policy.
A cyber liability insurance policy augments and supports the business’s efforts to recover in the event of a cyber-attack. It will provide access to expert resources and financial support through investigation, notification, recovery and post-recovery activities related to a data breach event.
Probably the most critical potential consequence of a data breach is damage to the company’s reputation. While major retailers like Target and Home Depot may be able to bounce back from that type of hit, small businesses can have a harder time winning back customer trust.
If financial information is compromised during a breach, your business could be hit by heavy fines from credit and debit card companies. This is particularly true if the company was not fully compliant with requirements from the PCI Security Standards Council, a global forum for implementation of account data protection measures.
If you don’t have a detailed breach response plan, your business could be focusing on the breach instead of serving your customers. In the end, their business suffers.
If your business computer system is hacked and cybercriminals make a false wire transfer using their online banking credentials, the bank is not responsible for lost funds, as long as they followed the proper security protocol on their end.
While there’s no way to guarantee that your business won’t get breached, there are steps yous can take to reduce the cost if a breach does occur. Clearly, the best way to mitigate the cost of a breach is to be prepared: secure the business, get a plan in place, and make sure everyone knows their role in preventing and responding to a breach.
Malicious hacking of a system shutting down computer systems for an extended period of time resulting in loss of income and extra expenses
A disgruntled employee spreads a virus into a computer system destroying data (and backup sources) resulting in expenses to investigate and recreate data
Teenage hacker sabotages data network with Crypto-Locker type malware, and demands an extortion fee of $50,000 to unlock your own data
Extortion demands of $25,000 to prevent your sensitive customer data from being released on the internet, to identity thieves and the general public
Lost laptop containing sensitive personal information of customers results in a data breach requiring investigation, notification and credit monitoring expenses
Customer data is breached, class action lawsuit filed. Duty to defend policy responds
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