Cyber Liability Insurance Overview
Cybersecurity poses a threat to any New England business, regardless of size. A data breach can result in financial loss, customer loss, and damage to your company’s credibility. Although they don’t make the news, small businesses are often an easy target for cyber attack. As technology advances, so do the abilities of hackers who can gain access to your data, compromise your clients’ livelihood, and your company’s reputation.
Cyber insurance liability has become a vital coverage for businesses big and small. It covers you most notably, for a data breach which leaves your customers’ social security numbers, credit card numbers, and identity exposed or stolen by hackers. Essentially, it helps you keep your business in the case of a cyber attack. As with any insurance policy, it’s important to speak with an expert to add or delete coverage specific to your business needs.
Cyber Liability Key Facts
- 72% of all data breaches occur in small-to-medium sized businesses
- The average cost of a data breach for a small business is anywhere from $36,000-50,000
- 60% of hacked small-medium businesses go out of business after 6 months
- 90% of data breaches impact small business
- 48% of data security breaches are caused by acts of malicious intent.
- 52% of breaches are a result of human error or system failure.
- A standard general liability insurance policy does not protect your business from cyber-crimes. A typical business insurance policy only covers tangible items, which does not include electronic data.
- There are two types of losses your business is privy to in the face of a cyber threat: a first party loss (any loss suffered directly by your business), or a third party loss (liability you face to an outside party). Cyber insurance policies provide coverages to protect you in the case of either loss.
Be sure to speak with one of our commercial lines experts at Phil Richard Insurance to make sure you have the right combination of coverage for your business insurance. Email: firstname.lastname@example.org or call us at 978-774-4338.
Frequently Asked Questions
What are the most common types of data breach?
Personal Identification Information which can include name, address, telephone number, social security number etc. and Personal Health Information, which contains physical or mental health information of an individual are the most common types of data breach.
What industries are frequently targeted in cyber attacks?
Retailers, Healthcare Organizations, Accountants, Law Firms, Insurance Agencies, Banks & Financial Institutions, Hospitality Companies, Convenience Stores & Gas Stations, Governments. Schools & Universities and Utility Companies are all frequent targets. Small businesses, in general, are easier to hack, therefore any small business should consider itself exposed.
What does cyber liability insurance cover?
Cyber liability insurance can cover: Computer Fraud Funds Transferred Fraud Cyber Extortion, Cyber Terrorism, Electronic Data Restoration, Business Interruption & Additional Expenses
Does my business need cyber liability insurance?
If your company handles sensitive information, talk to us about your cyber liability needs. Consider whether you consistently deal with protected data or not, cyber liability is generally accepted as a smart extra layer to add to your policy.
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The last piece of the puzzle?You need an agent you can rely on.
Everything you’re working for needs to be adequately protected, otherwise that second home or retirement may be out of the question. We find having an agent you trust is often an afterthought, but it should be the first one. It can make or break your business.
If you have any questions on your coverage, we will help you. We offer competitive products for many industries including Condo Associations, Non-Profits, Artisan Contractors, Restaurants, Auto Body Shops, Gas Stations, and more. Talk to us about your small business today.