Data breaches are becoming increasing likely for large and small businesses alike, as evidenced by the recent large-scale information breaches you may have seen on the news for companies like Target and Michaels. But small businesses are likely to get hit as well. Symantec, one of the global leaders in information protection, recently surveyed and discovered that 30 percent of all cyber-attacks were targeted at small businesses. These small businesses are seen as easier targets and a way for these hackers and data attackers to make their way to bigger amounts of data, especially when small businesses often supply information to the larger companies.
Most computer security professionals would tend to agree that there is no 100% foolproof way to completely stop these cyber criminals from getting into any system. And the average cost for fixing a breach, according to the Ponemon Institute, can easily drain millions of dollars from you and your business. So how can you truly protect yourself? Did you know that most insurance companies today actually provide policies that protect against these types of attacks?
A cyber liability policy goes a long way in protecting your business, as it can cover a range of claims that would result from a cyber attack on your business’ system. If personal or confidential information is compromised, whether it is for a business or an individual, you would be covered for a claim related to identity theft or even unauthorized access to such information. If a breach results in your business being unable to render their normal services for clients, you would be covered for a claim.
In addition to coverage against claims, a cyber liability policy covers even more, including first party costs for a range of different expenses. Costs for recovering damaged or deleted data would be covered. Business interruption losses and extra expenses that wouldn’t be covered by a normal property policy would be covered as well, since normal property policies don’t protect against cyber attacks since they result in no physical damage. Even extortion payments in the event of a ransom threat would be covered by a policy.
There is an increasing number of insurance carriers that are writing these policies, with more than 30 carriers offering their services in cyber protection. These policies can cover first-party and/or third-party losses, and they also could possibly be added on to an existing liability policy at a lower cost. So if you feel like you may have confidential information that could be at risk, and you want to feel safer with some protection in place, call us at 516-484-5200 to talk about the possibilities with us.