Cyber Liability Insurance
Protecting your data
We hear too often of major data breaches, or hacks, that affect millions of people but we rarely hear about what happens behind the scenes. Cyber Liability Insurance works behind the scenes when a data breach occurs, covering your liability, and covering the significant costs of defending you against lawsuits, public relations, forensic investigations, notification mailings, credit monitoring and paying any fines or fees that may be levied against you as a result of the breach. If you collect payments for goods or services, personal data for any number of reasons or store your clients' information in a CRM or customer management software, you are at risk of being hacked.
Cyber Liability can be added to most insurance policies or written on its own. Depending on the size of your business or organization, the amount of data you use / store or the amount of customer information you have, your liability could be quite high. IBM did a study in 2017 and reported that the average cost of a data breach is $3,620,000. They also reported that the average cost for each stolen record containing sensitive and confidential information is $141. For a small business those can be scary statistics, if you have 500 clients and their data is breached, that means you have $70,500 of liability just for the records, that doesn't factor in legal costs, investigative costs or any of the other costs associated with a breach.
Not only does Cyber Liability help cover the sensitive data that you collect and / or store but most insurance companies will help you develop a defensive strategy to protect against attacks. Businesses with less than 100 employees are targeted more often than larger businesses but we only hear about the large hacks in the news. More and more successful breaches happen each year as cyber criminals get more sophisticated and an increasing amount of information is stored electronically. Insurance companies not only help businesses create better preventative measures but will reward companies that actively use those measures with lower premiums.
If you're unsure of what your liability is when it comes to sensitive data and how it's stored, contact us today for more information or to request a quote. Our experience has helped us quickly identify where your exposures are and how to best protect them. We work with a variety of carriers that offer Cyber Liability and would be happy to advise and give you the peace of mind that knowing you're covered if your data is breached provides.