Cyber Liability Insurance 101
Cyber attacks and data breaches are on the rise more than ever before. Daily attacks victimize companies across the globe. Cyber breaches continue to increase within our market space despite the decreasing amount of computerized records. It is important to note these attacks are not limited to businesses—personal attacks are even more prevalent. Cyber liability insurance is the fastest growing type of insurance in America and it is not new to the market. Although cyber insurance has been around for over 10 years, yet many businesses and individuals are still unaware it exists.
Global cybercrime costs will double from three trillion in 2015 to six trillion by 2021. If those numbers do not convince you that you need cyber protection, take a look at the costs your company can incur after just one breach, including legal fees, investigation costs, customer notification and communication, customer identity recovery and the restoration of compromised data to name a few. Why is this happening and how can you make sure your family or business is protected?
The top three breaches in cyber security breaches occur through phishing, skimming and email manipulation. Well-known companies—Amazon, Twitter, Spotify, Netflix and PayPal—have been attacked. With the dramatic increase of cyber hacks in the last year, policies have improved to limit ransomware. The catch to this is that ransomware can now travel to mobile devices. It is now critical that employees, as well as a company’s leadership, understand and stay informed about cyber security.
Cyber insurance policies are the answer to protecting your identity and information. The policies we offer cover the liability issues for a data breach in which your personal data—such as usernames and passwords, social security and credit card numbers are hacked. Cyber liability insurance is vital to ensure that you will not lose your business in the event of a security breach. According to the National Cyber Security Alliance, one in five small businesses are victims of cyber crime every year. Of those businesses, 60 percent will close within six months of an attack since cyber breaches are extremely expensive if the company does not have insurance. If you haven’t already, please take the appropriate measures to ensure this does not happen to your company – starting with cyber liability insurance!
People often assume that their general liability insurance policy covers cyber liability. General liability insurance will only cover bodily injuries and property damage resulting from your products, services or operations. If your business gets hacked, your general liability insurance typically does not help you recover sensitive information. On top of this, most states require companies to notify customers of a data breach involving personally identifiable information – an extremely costly process.
Comprehensive cyber liability insurance can cover these costs. If your company deals with sensitive information, you are at a high risk of getting hacked. Compliance violations alone can cost you millions. Even if your company is not dealing with protected data, you should still make sure you’re covered.
To learn more about how Penny Insurance Agency can help you find the best coverage for your home or business, contact us today. We also can provide tips to help you manage your computer and technology risks developing from data loss, data breaches, denial of service attacks, malware, viruses and more. We are here to help you solve your most demanding problems. Let us help protect you.