Do I Need Cyber Insurance for my Pennsylvania or Ohio Business?
The answer is unequivocally yes. It will help protect your business against risks that are associated with:
- - Storing Employee Records
- - Storing Client Data
- - Accepting Credit Cards
- - Maintaining a Company Website
Most people believe that they are covered in the event of a data breach by their professional liability policy, but this is not normally the case. Even policies that have ancillary cyber liability insurance benefits generally have limited coverage and limits less than $50,000. According to the Ponemon Institute, the average breach in 2013 costs over $500,000.
Small Businesses as a Target
Small businesses seem to be a popular target. According to the Symantec 2014 Internet Security Threat Report, 1 in 5 small businesses were targeted by cyber attacks in 2013. Strangely, accorinding to a survey by staysafeonline.org, two-thirds of small business owners are NOT concerned about cyber threats. With the average data breach cost of $200/record (according to the Ponemon institute), small businesses should be more prepared because one incident could bankrupt the company.
Recovering from a Data Breach
If a data breach occurs, 45 out of 50 states require the company to notify every individual whose data was compromised along with paying for credit monitoring for all involved. This also could result in multiple lawsuits from each person whose data was compromised. The company (or a hired third party) then has to determine the cause of the breach and to remedy said issue. Such an investigation can temporarily stop work to mitigate data exposure, so there is a loss of time and revenue associated with a breach. Publicly traded companies may also see a decline in stock price from the negative press associated with a data breach.
Cyber Insurance Coverage
Typical Cyber Liability Insurance Policies Will Cover:
- - Crisis Management
- - Breach Notice Costs
- - Credit Monitoring Programs for those involved
- - Fixing the security issue
- - First and Third-Party Claims
With the average cost of a cyber insurance policy being less than the cost of a new laptop, you should contact INtegrity First Corporation for your free quote today!