If you have a small business, you may wonder if your operations are large enough to warrant purchasing cyber liability insurance. In fact, a large percentage of small businesses are victims of cyber attacks or data breaches every year. Cyber liability insurance is becoming increasingly essential protection in the world of business today.
As stated in a Small Business Trends article regarding cybersecurity:
If your business falls victim to a data breach or cyber attack, cyber liability insurance can help it survive. Your general liability insurance is not likely to protect you from this type of loss. Many general liability policies specify that they will cover damage to a third party’s tangible property. Electronic data is excluded from this category.
The National Cyber Security Alliance reports that the global average cost of a data breach is $3.62 million. In many cases, the cost is sufficient to take a business down entirely. One data breach can mean hundreds of thousands of dollars for:
Cyber insurance policies, as they were originally developed in 2000, covered business interruption and potential liability in the case of one business transferring a virus to another. Now, the coverage is much broader. Most cyber insurance coverage today includes multiple elements.
First-party coverages help protect your company from direct losses resulting from cybercrime, including:
Third-Party Cyber Liability Insurance Coverage
Cyber liability insurance provides coverage for damages or settlements resulting from covered claims made by third parties against your company and the cost of defending against such claims. This coverage may include:
To ensure your company has the protection it needs against cybercrime and data breaches, your best course of action is to speak with a knowledgeable agent as soon as possible. Our agent can work with you to determine your company’s level of risk and find the best quote on the cyber liability insurance you need.