Part 2: Cyber Liability
In the online world, it doesn’t matter whether your office is in a high rise or your quiet little home – if you store client information through an online network, you’re a target for cybercriminals. Cyber liability insurance helps cover the risks of doing business online, especially in the case of a data breach.
Though many don’t view their small business as a target for hackers, smaller businesses are actually at greater risk of a data breach than larger ones. Property Casualty 360 recently reported that 62 percent of all cyber attacks are aimed at small- to medium-sized businesses! When all is said and done, the average cost of a small business data breach is $86,500 – more than enough to put many out of business for good.
Even if you collect customer data and host it through a third party or in the cloud, it’s your business that is responsible for losses incurred when customer information is hacked. So how does cyber liability insurance help?
Most cyber liability policies cover:
- The cost of notifying customers of the breach and providing credit monitoring services for a limited time
- Certain costs of business interruption
- Security investigation and repair to determine the cause of the breach and to help prevent future breaches
- Legal fees and fines imposed by affected customers
Although it’s best to prevent a security breach in the first place, cyber liability insurance can keep your business afloat in case the worst happens. Talk to our commercial insurance experts today to find out which cyber policy is right for your small business!