Unfortunately, data breaches and other cyber crimes are becoming way too common. In the past couple years, data breaches have resulted in major fines and legal fees for thousands of businesses across the U.S.
It’s not just large organizations that are susceptible to being hacked or getting a virus. Did you know that 55% of small businesses have experienced a data breach and that 53% have had multiple breaches?
Even large companies such as Target can have breaches. In 2013 the company had an attack that affected 41 million customers. The retail giant had to pay an $18.5 million multi-state settlement. Even more recently, Equifax, a consumer credit reporting agency, had a cyber attack that resulted in 147.9 million people (nearly 1/2 the population of the U.S) having personal information stolen. The breach is expected to cost the company a total of $314 million.
A data breach can damage more than just your small-business computer system – it also can damage your reputation and put your customers and/or employees at risk. That's why cyber insurance can be a smart precaution for any size business.
What is cyber insurance?
Cyber insurance generally covers your business' liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver's license numbers and health records.
Won’t my general liability policy cover cyber liability?
General liability insurance covers bodily injuries and property damage resulting from your products, services or operations. Cyber insurance is often excluded from a general liability policy.
What does cyber insurance cover?
Besides legal fees and expenses, cyber insurance typically helps with:
Notifying customers about a data breach
Restoring personal identities of affected customers
Recovering compromised data
Repairing damaged computer systems
Most states require companies to notify customers of a data breach involving personally identifiable information – a process that can be very expensive. And even though most states don’t require companies to offer free credit monitoring following a breach, such a gesture goes a long way with public relations.
AZ Insurance Team
*All policies are a little different and this may not be applicable to your insurance policy, talk to your agent to see what your policy covers.*