Insuring Your Business Against Cyber Liability
Cyber crime can be a serious threat to businesses.
One survey found that 44% of small businesses have been a victim of a cyber-attack. And, unbeknownst to 75% of owners, business checking accounts are not protected when it comes to online hacking, unlike consumer accounts.¹
Business owners are also required to protect their customers’ personal information. In 47 states, and the District of Columbia, businesses are required to notify individuals of security breaches involving personally identifiable information.²
As evidenced by news of large-scale data breaches, online hacking has become another form of risk that businesses now face everyday. Like many risks, businesses can insure themselves against the financial damage a cyber-attack may inflict.
Cyber liability insurance may cover a range of risks, including:
Cyber liability insurance is fairly new so expect a wide divergence of coverage and costs. It may be purchased separately, or as a rider to your current business insurance policy. Be prepared to comparison shop to get a better understanding of coverage and costs.
Small business owners might also keep in mind that “an ounce of prevention is worth a pound of cure.” There are steps you can take to protect your business from becoming a cyber victim.
Consider steps to protect your data.
As obvious and simple as these precautions may sound, some businesses fall victim to cyber-attacks because of their failure to take them.