Cyber Liability Insurance — What You Should Know For Your Small Business
In today’s fast paced world, it’s hard to think about doing business without using technology or the internet. The problem now, however, is how to stay connected while staying protected against online hackers — which is where cyber liability insurance comes in.
According to research from Travelers, 1 in 3 documented data breaches happened for businesses that had less than 100 employees. Unfortunately, almost 60% of small businesses affected by a data breach end up closing their doors within 6 months of the attack. Luckily, you can protect yourself, your business, your employees, and your clients by purchasing cyber liability insurance. Depending on the specifics of your business, you could purchase up to $100,000 of coverage for as little as $1000 annually.
Here’s a little more information about why you need cyber liability insurance and what you get when you purchase a policy.
The Risks You Face
While you may think that credit card data breaches fall under the responsibility of credit card companies, it’s important for business owners to understand the full extent of a cyber attack. Especially as more small businesses are becoming targets for hackers. Keep in mind that hackers aren’t the only source of many cyber incidents; human error, like an employee losing a smartphone or laptop with private data, or system malfunctions are actually one of the top cyber risks for businesses.
Regardless of how it happens, if your computer system is hacked you could be financially responsible for notifying all clients of the data breach, any costs incurred by your clients affected by the data breach, as well as the costs of identifying and resolving the source of the breach. Not to mention regulatory fines and any class action lawsuits filed on behalf of customers whose private data was exposed. According to recent data, the average cost of a data breach for a small business ranges from $36,000-$50,000.
The Coverages You Need
Besides being highly affordable, cyber liability insurance is also incredibly customizable. Your independent agent will be able to put together a package that fits the needs of your individual business. In general, a good cyber insurance policy will provide multiple types of liability protection such as:
- Notification to your customers
- Credit card monitoring services
- Legal defense and settlement costs
- Financial losses resulting from identity theft
- Business interruption
- Data loss or destruction
- Lost funds
- Computer fraud and cyber extortion
- Reputation management
Think it’s time to step up your cyber security game? Give #MorseOfCourse a call today. Our team of dedicated agents will get you the package you need to protect your business: 508-238-0056.