Where Security is Covered
Any business that stores data on a network is at risk for a cyber attack.
Cyber insurance can help restore employee and customer identities, recover compromised data and repair damaged computers and networks.
Data privacy attacks occur every 40 seconds in North America
Cyber insurance covers the following expenses:
IT Forensic Investigation
Class Action Lawsuits
PR Firm to manage crisis
The truths behind the myths
A small business like mine doesn't need cyber insurance.
85% of data breach insurance claims come from small to mid-sized businesses, and more than 60% of those businesses never recover from a data breach.
Regularly backing up your data is one way to minimize the damage that can occur if your business is compromised. If a computer is stolen or your network is infected with a virus, for example, the backups can enable your business to get back on its feet sooner.
Hackers aren't interested in my business data.
Any data that can be monetized, such as credit card numbers, health records and contact information, is an attractive target. And if it's easy to get, the more appealing it is to hackers: even email addresses can be used to lure employees or customers into disclosing personal information.
Instruct your employees to not leave laptops unattended in coffee shops or airport lounges and tell them to use unencrypted smartphones to conduct business - and to secure their devices when not in use.
Data breaches are already covered under my general liability insurance.
No, they are not and general liability insurers are making sure consumers know by amending their policies to state explicitly that losses due to cyber breaches are not covered. But even with cyber insurance, there are steps you can take to reduce the risk of a data breach in your organization. For example, employees should know and understand the dangers of using unencrypted connections via public Wi-Fi hotspots.
IT vendors have cyber security figured out.
Two-thirds of data breaches are tied to third-party IT vendors.
Cyber security and risk management should work in tandem. For greater peace of mind, be sure that you regularly receive audits and reviews from your data security providers. Those reports should include what they are doing to address their cyber security and governance in the event of a breach.
Cyber insurance is too expensive.
A cyber insurance policy can cost as little as $1,000 annually, whereas crisis response costs following a breach can easily climb well into six-figure amounts. There are also legal costs and settlements to consider. Few events can be more damaging to your business than a full-scale data breach. Having cyber insurance could prove to be priceless when it comes to protecting you and your business.