Modern business is done over the internet. Everything from data storage, to collecting payments is now done online. As the amount of information businesses store online increases, so does the risk that the business will be a victim of a cyber attack. According to Symantec, 40% of cyber attacks are against businesses with fewer than 500 employees.
As the risk of a cyber attack increases, so does the cost associated with an attack. Kapersky Lab says that the average annual cost to a business affected by an attack was over $200,000. As the rate of attacks increase, and the costs of attacks skyrockets, the need for businesses to protect themselves with Cyber Liability insurance is greater than ever.
Modern cyber Liability policies are becoming more and more affordable and have specialized coverages. Some items a cyber policy may include are coverage for:
- Data breaches- A data breach involving protected, private, personal information could be extremely costly to a business. Compliance with state and federal laws could easily cost $5-$50 per stolen record in the State of Florida due to notification and other governmental requirements. A data breach could stem from a hacking event, but could also be caused by a stolen laptop or unauthorized access to private personal information by a disgruntled employee.
- Damages to third parties- Even if a business is not affected by a virus, it could be held responsible for damages caused by transmitting the virus to another party. They could also be held liable for damages caused by a first party data breach.
- Ransomware- This is a fast-growing kind of attack. Hackers take over a business’ network, point of sale system, or data and hold it for ransom. The ransom requested is usually requested to be paid in the online cryptocurrency known as bitcoin. In exchange for bitcoin the hacker usually unlocks or returns the data. Cyber insurance can provide coverage for the expenses involved in paying ransoms and restoring data or networks.
- Business Interruption- Companies that rely primarily on computers to do business may lose revenue if an event keeps them from transacting business. A hurricane, or other disaster could prohibit the business’ ability to transmit data, or a ransomware event could cripple a company’s ability to take payments. Cyber insurance can provide coverage lost revenues due to computer related interruptions.
These are just a few of the coverages that could be included in a Cyber Liability policy. Not only can Coverage Pro help businesses protect their bottom line from cyber related event, but it can also help them prepare. Coverage Pro can provide cyber security planning and training resources to business owners. This will help avoid cyber related incidents, but when the inevitable does happen, the business is prepared to respond.