Do I Need Cyber Liability?
Every modern business faces cyber security risk. Over half of all small business owners will experience at least one data breach. The number one cause of cyber-attack is human error.
What would happen if one day your employee opens an email that looks like it has shipping information? The email noted a forthcoming delivery and included a seemingly innocent package tracking link. When your employee clicked on the link it contained malware, potentially releasing a virus. After a few months of nothing happening, you thought you were in the clear until one day the hacker decides to strike and holds your data for ransom.
Taking care of the issue will take up time and money. Thankfully, we are here to help protect your business from the effects of a cyber-attack.
What Will It Cover?
A good cyber liability policy will cover the ransom payment to recover the data. The average ransomware demand has risen from $5,000 to over $100,000 within the last two years!
Second, it will pay for the business interruption costs for the time lost while trying to recover from the attack. If your business is forced to shut down, your interruption coverage can help cover your operating expenses, such as: Revenue you’d normally make if your business was open and payroll for your employees. Sometimes, the insurance company will call upon a forensic accountant to determine to amount lost.
The third coverage they will provide is for incident response to the attack. They will pay the IT forensics team and lawyers for legal advice. These professionals may be crucial in helping you through the incident.
Lastly, the insurance company will help pay for reputational harm that results from an attack. 87% of consumers say they are willing to walk away and take their business elsewhere if, or when, a data breach occurs.
If you are selling merchandise to customers, you may use a third-party vendor to process credit card payments. As a small business owner, you don’t have time to read the terms and conditions on everything and you may assume that the credit card company is responsible for protecting your client’s credit card information from a data breech. This assumption is incorrect! 63% of small business owners learn the hard way.
Your business is liable when a card data breech occurs and you could pay tens of thousands in fines and other expenses. You are legally required to provide notification and credit monitoring services to all your current and past clients who may have been affected by the data breech.
In today’s digital world, it is crucial that your business be protected from cyber-attacks. Your business owner policy may have some cyber liability coverage. However, the actual cost almost always exceeds the amounts listed on your policy.
To find out more about these, as well as other products and services contact White Slate Insurance at 817-809-4522 and we’ll help make sure you’re properly covered.
Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. Consult the actual policy or your agent for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you. Your eligibility for particular products and services is subject to the final determination of underwriting qualifications and acceptance by the insurance underwriting company providing such products or services.
This website does not make any representations that coverage does or does not exist for any particular claim or loss, or type of claim or loss, under any policy. Whether coverage exists or does not exist for any particular claim or loss under any policy depends on the facts and circumstances involved in the claim or loss and all applicable policy wording.
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