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Why should my business have Cyber Insurance?
Does your business accept credit cards?
Does your business bank online?
Does your business use Facebook, Twitter, or LinkedIn?
Does your business store sensitive customer or employee data?
If you answered yes to any of these questions then you need a cyber insurance policy and here is why.
THE NEED FOR CYBER INSURANCE IS REAL
A research study conducted by Deep Instinct on attempted cyberattacks for 2020 reports that malware increased by 358% overall and ransomware increased by 435% as compared with 2019. Growth of that magnitude is very alarming and shouldn’t be ignored.
The pandemic has accelerated companies’ business transformations to conduct more business online or from home, which has lead to a number of vulnerabilities for cyber crimes to grow. The data shows that cyber crime has become a serious threat, even to small businesses, and is predicted to continue to grow as security measures try but fail to keep up to the latest e-crime tactics. For many businesses, they were hit with this during an event that they never would have predicted; the pandemic, causing added costs and headaches when revenue was at its lowest and the future was unstable at best.
HOW CYBER INSURANCE CAN PROTECT YOUR BUSINESS
Cyber Insurance can protect small businesses from computer, network, and Internet risks, including the high costs of a data breach, which can include first and third party losses.
What is a data breach? A data breach is an incident in which sensitive, protected, or confidential data has potentially been viewed, stolen, or used by an individual unauthorized to do so. This information, such as personally identifiable information (PII), Personal Health Information (PHI), intellectual property or trade secrets can be electronic or physical records.
What are first-party losses? These are the costs incurred directly from a data breach such as notifying the affected parties, funding campaigns to rebuild your reputation, credit monitoring services for those affected, business interruption or income lost during down time, cyber extortion also known as ransomware costs to unlock your system or information, data recovery, payment of regulatory and Payment Card Industry Data Security Standard (PCI) fines, legal services, stolen funds not reimbursed from fraudulent transfers, and computer services.
What are third-party losses? These are the legal expenses and damages if your business is sued over a data breach or displays unauthorized media material online on a site maintained by you.
WHAT ARE MY OPTIONS FOR COVERAGE?
Having procedures to reduce these risks and a Cyber Insurance policy for unforeseen events has never been more important to protect the future of your business, as many have not been able to survive after a cyber attack and the high costs that can be associated with it.
Many commercial insurance carriers will have an endorsement option to add cyber coverage to your commercial liability coverage, or you can look at a stand alone policy, specific to this risk. The cost will be rated on a number of factors depending on the industry, size of business, and current procedures. Call today if you would like more information or a quote to protect your business from this very real threat.
