18 Mar Cyber Insurance – The Threat is Real, Get Protection
With numerous cyber attacks in the news recently, including Target and PayPal, it shouldn’t come as a surprise that cyber threats are real. However, many companies may not be aware that protection is available through Cyber Insurance also known as Cyber Liability Insurance. More importantly, it’s not just the large corporations that can incur considerable damage from a cyber attack, but small businesses that are at risk as well. In fact, most attacks target small businesses with fewer than 250 people.
It’s commonly assumed by many business owners that their General Liability coverage will cover losses from a cyber attack. Chances are that their general coverage may not provide the security they need from damages incurred by a cyber attack. Recently, Sony was on the hook for damages that occurred from an attack against their PlayStation Network. Their liability policy did not cover the damages, forcing them pay it out of pocket for it. Did it break Sony? No. But could it mean the demise of a small business? Yes.
Additionally, there other cyber risks which are often overlooked. What if your employee leaves a laptop or smart phone in a taxi? What if personal information is stored on those devices? It is possible for identity theft to occur with as little as having the full name, the date of birth, the phone number, and the address.
What about extortion? Extortion is more common than people may realize. A popular twitter account holder learned the hard way that extortion happens.
Have you considered the cost if an attack does happen? If you do end up with a security breach, there are quite a few expenses that result in just handling the breach, such as hiring professionals to assess the damage, notifying clients and providing credit reports, which is required by state privacy regulations. These first-party costs are usually not covered by Professional Liability policies.
Each business is different and thus the cyber risks will be different. It is important to take the time to assess your company’s security risks. Then talk with your insurance broker to determine whether or not your current insurance policies cover those risks. Contact us today, give us a call at 800-989-8712, or email us so that we can help you create a cyber liability policy that works for your business.