What do most small businesses, including contractors, hair stylists and florists have in common? They likely use technology to run their business. Any company that has a website, email system, or stores confidential information electronically, needs cyber liability coverage.
Forty-three percent of cyberattacks target small businesses1; 60 percent of those businesses close within six months of a breach2. From vicious malware to negligent employee slip ups, businesses need to make sure they are properly protected when a cyberattack happens.
Unfortunately, a common misconception is that a standard business liability insurance policy includes cyber liability coverage. The reality is that you must elect to add the coverage to your policy.
Cyber Liability Coverage
Cyber liability coverage is not spyware; it doesn’t protect you from a cyberattack. While you may not be able to prevent an attack, cyber liability coverage can protect your business from the fallout after a breach. Specifically, when:
- Your confidential data was transmitted or stolen
- You work with a third-party vendor to store private data and that data was compromised
- A cybercriminal installs malware on your device or system and then demands payment to remove it
If attacked without proper insurance coverage, business owners are responsible for loss of income, restoration of computer hardware and data, credit monitoring services, public relations consultation and regulatory fines, penalties and expenses, etc., that often result after a cyberattack.
All businesses with a presence online need cyber liability coverage. Here’s why:
- 75 percent of cyberattacks are random 3
- Most cyberattacks target businesses with less than 250 employees 4
- The average cost for each lost or stolen record in a business data breach is $221 5
- The cost of a data breach for a small business averages $36,000 and can exceed $50,000 6
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Next Steps
Don’t let the threat of a cyberattack become a reality. Equip your company with the proper cyber security protocols (learn more here) and if the worst does happen, make sure your company, employees and customers are protected with cyber liability coverage.
Learn more about Integrity’s Cyber Liability Coverage here. The cost is affordable and the coverage can be tailored to fit your needs. Call your independent agent today to see if you have proper coverage.
Commercial policies are underwritten by Integrity Insurance, Columbus, OH, and are subject to underwriting approval. Not available in all states. This article is for informational and suggestion purposes only. Implementing one or more of these suggestions does not guarantee coverage. If any policy coverage descriptions in this article conflict with the language in the policy, the language in the policy applies. Please contact a local, independent Integrity agent for complete details on Integrity’s business insurance coverages and discounts, including Business Cyber coverage.
Sources:
1 Symantec’s 2016 Internet Security Threat Report
2 U.S. House Small Business Subcommittee on Health and Technology
3 The Cyber Resilient Organization: Learning to Thrive Against Threats
4 Aabacosmallbusiness.com
5 National Small Business Association
6 First Data Market Insight