If your business suffers a breach of some sort it can cause interruptions in your business, legal dealings and loss of revenue. A cyber liability insurance policy provides many benefits including:
If your business suffers a cyber attack, it can bring your operations to a halt. Cyber liability insurance may cover the loss of income during your downtime to cover expenses such as employees and operating expenses. In addition, the costs of your business operations may be inflated after a cyber attack and that increase may be covered as well.
So you had a cyber attack and worked hard to get your information back. What now? You will want to know what happened, the extent of the breach and why/how it happened in order to avoid going through an attack again. With cyber liability coverage, your business may have resources available to answer those questions and provide support from cyber specialists.
Depending on the severity of the breach, you may have legal action taken against your business which can be very costly. Cyber liability coverage can help your business afford proper legal coverage after an attack.
Cyber Extortion Defense
When cyber attacks happen, hackers may use extortion through ransomware and demand payment in order to return your data. This usually comes with a very large fee, so would you be able to buy back your information if it happened to you? In the unfortunate event that you are being extorted, cyber liability can help you recoup the losses.
With data and information often being valued higher than physical assets, it’s important for your business and your clients to have the proper measures in place to keep information safe as well as coverage in the event that a data breach attack is targeted at you. Your commercial general liability policy may not protect your organization from a loss related to data breaches. Talk with your MIG broker today for information on supplementing your commercial policy with cyber liability coverage to give your invisible assets coverage and give you and your business peace of mind.
Do small businesses need cyber liability insurance?
You might wonder if cyber liability insurance for small business is necessary. Every SME (small to medium enterprise) has exposure to cyber risks, just as any large organization may have. The cost to overcome a cyber crime event will be proportionally as relevant to the well being of an SME. Can your business afford to weather the costs associated with overcoming a cyber attack?
Despite all the high profile news regarding the prevalence of cyber crime, only about half of all small businesses allocate budget to mitigating the risk of a cyber attack. Small businesses may be less likely to ensure regular updates to software are done on a timely basis as they don’t often have the internal IT teams to keep on top of their technology ecosystems to the same degree as larger organizations. Many businesses of every size are employing SaaS (software as a service) platforms rather than in house solutions for technology. This means more data is flowing between platforms. And only about one quarter of small businesses have considered their need for cyber liability insurance.
Without proper cyber liability insurance coverage your small to medium sized business will be responsible for all costs associated if you should be the victim of a cyber breach or attack. As a business, there are compliances that must be met, and to be on side with this, there are significant costs you would need to cover. These costs include communications to your entire customer base, any court fees and settlements from legal action, data asset losses (you may need to rebuild all your data files), regulatory investigations and the cost of lost business. As you can imagine, this will add up quickly and can be devastating to the financial viability of a business.
How much does cyber liability insurance cost?
For a small to medium sized business, you can expect the cost of cyber liability insurance to be anywhere from $80 to $650 per month depending on your business size, use of data, risk mitigation processes and many other variables.
Contact us to find out more about Cyber Liability Insurance Coverage.