In today’s world, most businesses have an online presence and store some customer data. Cyber-attacks not only present more threat than ever before, but they are also escalating in frequency and intensity.
Many small businesses feel that they are “too small” to be hacked. On the contrary, small businesses are now becoming prime targets because there is little or inadequate security. We also hear that the business doesn’t “store” any data, they simply swipe a credit card. Some of the merchant agreements with credit card vendors attempt to push the liability back to the retailer, so read the fine print.
With the introduction of data breach notification laws, even small businesses can bear significant costs due to fines, notification expense and more. In addition, customers lose confidence in the business or brand and that trust is almost never fully regained, even when the company recovers. Cyber liability insurance helps to mitigate the losses associated with cyber-attacks by providing safeguards against risks related to online and information technology activities. This coverage can be tailored to protect your clients against data breaches, network failures, extortion, and media liability.
As an agent, you should offer a cyber-liability option to your customers since most of them…
According to the Verizon Data Breach Investigation Report, 61% of breaches hit smaller businesses in 2017, up from the previous year's 53%. Most news outlets only bother to report those data breaches associated with big companies, thereby perpetuating the notion that only big companies are hacked. The complaint of cyber liability insurance policies being too expensive for small businesses no longer holds true, as custom-made solutions are now available.
In the event of a cyber-attack, cyber-liability insurance may cover:
In addition to businesses, local governments and larger jurisdictions face cybersecurity challenges. Even if your client is a small to medium business or even a small municipality, cyber-attacks are now a reality and the responsibility is to protect themselves.
Get an easy cyber indication today by contacting a Tuscano Casualty Underwriter.
Here are just a few examples of cyber claim scenarios: