Cyber liability is fast becoming a common term for small to medium sized businesses. If you own a business with less than 50 employees you actually have a better chance of having a cyber-loss than you do of have a fire. Your business insurance program needs to have cyber liability coverage. Standard commercial insurance does not cover data damage, destruction or loss, and traditional business interruption insurance doesn’t cover business systems downtime.
According to a recent article by Bloomberg Law, one quarter of all the organizations in the United States have suffered a data breach in the last year. Each breach averaged more than $1.2 million per incident. Yet, less than 35% of businesses actually purchase cyber liability insurance.
Common Cyber Liability Threats
- Employees stealing confidential information.
- Cloud attacks: The growth of the cloud will lead to attacks targeting data (personal or corporate) stored in the cloud.
- Cybercriminals targeting attacks on Android platform devices.
- Hackers using special software to hack your laptop and hard drives.
There are very strict regulations at the State and Federal level that place mandatory requirements on companies that have suffered a cyber-loss. If your firm is responsible for the theft of a client’s personal information, you may be required to buy personal identity theft coverage for them for up to one year or more. This requirement can cost you as much as $200 per individual item. Cyber insurance can protect you against many of the risks associated with a loss.
- Identify theft recovery
- Notification costs
- Loss revenue
- Data restoration
- Third party coverage
The Government has published some helpful guidelines.
When you think of Worthington Insurance you think of choices. As an agency that represents various insurance companies writing business in PA and New Jersey, we can match you with an insurance company that is the best fit for your insurance needs.