Does your organization use some form of technology to do business?
If so, you face cyber risk every day.
Thousands of cyber attacks are launched every second.
Don’t believe us? Check out this map displaying global cyber attacks in real time. You can actually watch the action as it happens!
The attacks are represented by streaks of colored lines. However, they account for only one tenth of one percent of all cyber attacks. The whole map would be covered if it were to show every attack, so a sample is all that is shown.
Now, consider this…
For every high-profile case, there are dozens of cyber threats held by small businesses and everyday enterprises.
Any organization that uses some form of technology to do business faces cyber risk. As technology becomes more advanced and sophisticated, so do the threats we face. That is why every type of business – large or small – should be prepared with cyber liability insurance.
However, a shockingly low number of small businesses have invested in cyber liability insurance to combat the potentially devastating effects of a cyberattack. Many small business owners are unaware of the high risk of data breaches at their own establishment and believe that hackers are more likely to attack higher profile businesses. This is understandable, as the newsworthiness of data breaches at larger corporation often overshadows the more frequent security violations that target small businesses.
Recovery from a business data breach can cost small businesses not only their reputation, but thousands upon thousands of dollars in fines. Such expenses include business interruptions, security overhauls, concessions to customers, and sometimes bankruptcies and business closures. Since most general liability policies do not cover the costs of a security breach, small business owners should take action to not only secure their customers’ valuable data, but to protect their own assets should such an event occur.
Like any type of coverage, cyber liability insurance covers policyholders in the event of a specified loss – in this case, a cyber-attack. As business owners work to recover information and resources from a data breach, the insurance covers expenses such as credit monitoring for affected customers, lost revenue, crisis and reputation management, customer notification, and investigation of the attack.
Although most policies provide third-party liability coverage as well as first-party coverage for loss or damage to property, there is a wide variation in other needed coverages. More specifically, small business owners need to know whether coverage is provided, and at what level, for:
- Regulatory actions
- Incident response costs
- Credit and identity monitoring
- Transmission of viruses
- Internet and media liability
- Network security
- Business interruption and extra expenses
- Extortion expenses
- Data loss and restoration
Ultimately, cyber liability coverage comes at a low premium in comparison to the potential repercussions of a data breach. Representing a small percentage of a company’s annual insurance costs, it is well worth the investment. You have worked too hard to lose it all.
Are you covered in the event of a cyberattack? Let us help you find the right cyber liability insurance solutions to help protect your business.
For more information, please contact us at 845-986-1177. We are your business, home, auto, and life insurance solutions provider, partner, and adviser, serving Warwick, Greenwood Lake, Florida, Goshen, Pine Island, Middletown, Chester, Monroe, Newburgh, Orange County, and the Hudson Valley and Tri-State Area.