In this day and age, threats are everywhere, and it’s important to recognize that virtual threats are just as dangerous as physical ones. With the importance of technology in business, it is essential that businesses protect not only their physical assets, but also the information kept on computers and passed through the web.
Liability for loss of customer or employee data isn’t typically covered under corporate insurance policies. Some policies may cover a portion, but you don’t want to wait until after a breach to find out. As with everything insurance related, it’s always better to understand what type of coverage you’re receiving before an attack or unforeseen event occurs.
Basically, cyber liability insurance offers protection from exposures that come from Internet communications and takes into account both first and third party risks. It includes privacy issues, virus transmission, infringement of intellectual property and any other serious trouble that could be passed from first to third parties through the internet.
Surveys have shown that while many companies identify cyber risk as a number 1 concern, only 35% of companies actually invest in cyber liability insurance. This is quite a low number considering the average cost of a security breach is over five million dollars, and it may have to do with the fact that many executives don’t even know that cyber liability insurance exists. For those that do, they may not be very worried about the consequences or may not think that an attack will every happen to them, but, as we learned from the recent data thefts of Target and Neiman Marcus, a breach can happen to anyone.
If you’re not yet convinced that you need cyber liability insurance, imagine that your company has been breached by a hacker and now has all your clients names and contact information, as well as all your employee’s social security numbers. Without cyber liability insurance, this can be a huge problem. Not only has important customer and employee information been leaked, but your brand reputation and company wallet may suffer as a result.
Whether you’re a large or small company, cyber liability can help protect you in the event of an attack. It’s not enough to just have standard business liability insurance, you must protect yourself in the cyber world as well. For more information on how you can protect your business with cyber liability insurance, call us today at 305-648-7070 or visit out contact us page on avanteinsurance.com.