We live in a digital age, we’ve all heard that statement right? Well, what does that really mean for you and for your business? Can you protect your business from cyber -attacks? From an insurance standpoint the answer is yes, you can in fact find insurance coverage that would protect your business in the event of a cyber-attack. Should you buy cyber insurance? The facts are pretty scary, from the research we were able to find online, around 60% of small businesses that incur a cyber-attack/data breach close their doors within 6 months! If you are thinking to yourself, I understand all the cyber security risks, but that’s just for Fortune 500 companies not your small Ohio businees, you would be sadly mistaken. Most cyber-attacks are actually targeted toward companies that employ 250 people or less. Even if you have all of your internet and cyber security up to speed, you likely work with other vendors that have to either use your system or share your information in one way, shape, or form. Many security breaches on the cyber side of the business come in through a figurative side or back door utilizing companies that you work with, not necessarily your company itself.
You probably have a business liability insurance policy, and that should cover you in the event of a cyber security breach or a cyber-attack right? You would hope, but you would be hoping in vain because with most modern business liability policies, they offer little to no coverage for cyber liability. The vast and rapid expansion of these risks is causing a wider gap to form, and a separate cyber liability policy has become essential in today’s day and age.
How can a Cyber Liability policy help you?
We had the experts at Grange Insurance (one of our trusted carriers) help weigh in on this topic cyber liability insurance.
“Data Breach: A data breach is a security failure where sensitive, protected or confidential data is copied, transmitted, viewed, stolen or used by someone who is not authorized to do so.
It can be as high-tech as a hacker cracking a complex encrypted system or as simple as an employee losing a smartphone. And it happens more often than you can imagine. More than 1 billion personal information records were stolen in 2014 alone.
Losing your customers’ data can quickly become expensive. In 2015, the average cost paid for each lost or stolen record containing confidential information was $154, and there can be severe penalties for losing credit card data, along with the costs of forensic investigations, credit card reissuance and fraud. But maybe the biggest cost is the loss of your customers’ trust if you aren’t covered by insurance or prepared to remedy the situation.
Third Party Data: Whether it’s your company handling someone else’s data or a vendor that handles your sensitive information, you must make sure you’re protected.
Even if you’ve entrusted someone else or another company to keep your data safe, cyber coverage can cover you if that information is ever lost or stolen.
Extortion & Ransomware: Hackers who target small businesses will sometimes install malware on your system or devices, then demand payment to remove it. With cyber coverage, your business can be protected against this kind of threat.
Cyber coverage is rapidly evolving and determining your risk and needs is essential. The best way to find what fits your business is to speak with an independent agent. Your agent will review your business exposure, different coverage options and make the best policy recommendation for you.”
Connect with Us!
If you have further questions about Cyber Liability Insurance in Ohio, give us a call or shoot us an email today! We want to write posts about your favorite topics, be sure to interact with us on social media and let us know what you would like to see! You can connect with us through the following channels…
Simply click the links above to connect with us and give us some feedback on our blog!