Almost every business has a cyber liability exposure, and most businesses are securing some form of coverage to protect them from these types of threats. A recent report by a leading insurance firm said that purchases of cyber insurance grew over 30% in the last year. Did you know that an average business has a greater chance of having a cyber breach than it does of having a fire? It is true, and your basic business insurance policy most likely will not cover cyber liability losses.
It has become clear that even a good information technology (IT) department cannot solve or prevent all cyber risks.
Every business should have a cyber preparedness plan that includes effective security, managed backup, and cyber liability insurance. Forty-eight states have enacted legislation that requires businesses to notify individuals of security breaches of information involving personally identifiable information—even if the information has not been used. In most cases, the notification must also include a one-year credit monitoring service offer along with a new card or account number for each customer. Costs can be as much as $250 per customer per individual breach.
Cyber Liability Insurance
According to the International Risk Management Institute, cyber insurance covers liability associated with the exposure or theft of customer personal information, such as Social Security or credit card numbers, resulting from unauthorized access of the electronic network. Cyber policies cover a variety of expenses associated with data breaches, including notification costs, credit monitoring services, costs to defend claims by state regulators, fines, penalties, and loss resulting from identity theft.
Cyber policies also cover liability arising from website media content as well as breach related property losses such as: (a) business interruption, (b) data loss/destruction, (c) computer fraud, (d) funds transfer loss, and (e) cyber extortion.
Our office can provide your business with the right combination of coverages suited for your company. Cyber risk insurance is available at very reasonable premiums and helps protect your business from the losses associated with cyber liability.
Allen & Furr Insurance, is an Independent Insurance Agency, we represent many of the top insurance companies in the country. This means better coverage, and at a competitive price, including life and health insurance.
For more information on cyber liability insurance click here