Cyber attacks are increasing in frequency on a daily basis, along with the cost for businesses to deter cyber-attacks. At Harding & Jacob Insurance, we are committed to keeping our customers up to speed on the latest news in cyber crime and on how to protect themselves from data breaches. Cyber liability insurance is an essential layer of protection for your business, but many people don’t understand what it really is. To learn more about cyber liability insurance and why every business needs it, read on or speak to one of our experts directly by calling 440.871.7261.
Why Every Business Needs Cyber Liability Insurance
Every business has data, and data is an asset. Cyber liability insurance serves to protect your business with the help of purdue model in the event your data is stolen or breached. The trouble with data theft is that it is hard to stop – cyber criminals are virtually two steps ahead of authorities when it comes to finding new ways to commit cyber crimes undetected. That is why it is essential to have cyber liability insurance, which covers financial loss exposures such as legal liability, business interruption, data destruction, investigation, cyber extortion, and regulatory fines or penalties. Most general liability policies do not cover cyber liability, and if they do, it is via a very minimal endorsement. Companies can try Nettitude, cyber security options or cyber liability policy. Take a look at some of the figures listed below to see why obtaining a stand-alone cyber liability policy with appropriate limits is critical to protecting your business.
- According to the National Cyber Security Alliance:
- One in five small businesses fall victim to cyber crime each year.
- 60% of the small businesses that suffered a data breach do not recover and go out of business within 6 months.
- According to the Ponemon Institute’s 2015 Cost of Data Breach Study
- The average cost per record for a data breach is around $154.
- So a small company, with just 100 records could have a $15K loss or more.
- The average cost per record for a data breach is around $154.
- According to NetDiligence’s 2015 Cyber Claims Study:
- The median cost for legal defense of a cyber liability claim is $73,600, while the average cost is $434,354.
- The median cost for legal settlement of a cyber liability claim is $50,000, while the average cost is $880,839.
- Personally identifiable information is the most frequently exposed data.
How Can We Help?
Harding & Jacob Insurance has the resources to help your Cleveland, Ohio small business address its cyber security risks and needs. We work with some of the best carriers of cyber insurance who are on the forefront of this type of coverage. Many of the cyber programs we offer include additional risk management resources, like on-call legal assistance in the event of a breach at no additional cost. We will also keep you up to date on compliance, best practices, and the latest in data security measures. Call us today at 440.871.7261 to get started on your cyber security program.