Cyber Liability Insurance is a somewhat new coverage in the world of business insurance. It is coverage designed to protect businesses online. Specifically, Cyber Liability Insurance provides protection against data breaches, network security, intellectual property, privacy issues, errors and omissions and many other internet and technology related problems. It can also offer coverage for data breaches related to the physical loss of computers and mobile technology equipment, whether they are stolen by employees or people outside of the company.
Businesses require Cyber Liability because they are vulnerable to attacks, hackers, viruses, security breaches and intellectual property lawsuits. Online hackers are commonplace and frequently target businesses to obtain sensitive information, including credit card and social security numbers.
According to Travelers Insurance, the average cost per compromised client record is $198. Of investigated breaches, 72% are for companies with less than 100 employees. If the FBI, NASA, the Department of Defense and the CIA can have security breaches- which they do- each and every business out there- small or large- most certainly can too. There are substantial financial costs involved in finding and remedying a data breach, including the cost of notifying customers- now legally mandated by 46 states- possible fines and legal expenses. To say nothing of the immense damage to a business’ reputation and from the interruption to business.
So, you might be thinking, do I really need Cyber Liability Insurance? If the above statistics from Travelers do not answer this question for you then consider reading the following Forbes magazine article:
If you’re interested in Cyber Liability Insurance coverage for your business call one of the agents at Specialized Insurance Services, Inc. at 866-934-9774. We will set you up with the coverage your business needs.