The cost of dealing with a data breach goes beyond repairing databases, strengthening security procedures or replacing lost laptops. According to North Point Underwriters (NPU), one of our partners, the average cost of a cyber attack for a small to mid-sized company is $188,242.00.
Regulations requiring notifications of affected customers also drive costs for companies in which a data breach compromises personal or confidential data. NPU estimates that the average cost per record is over $200 when a cyber breach occurs.
Traditional business insurance may not be enough to protect companies from cyber-crime. But just how does cyber insurance work?
What is Cyber Liability?
Cyber liability insurance is designed to protect a company for damages, expenses, and fines that arise out of the unauthorized access to or unauthorized use of data. The coverage extends for viruses, denial of service attacks, and transmission of malicious code. In addition, cyber liability offers coverage for both electronic and paper files. Specifically, the coverage can offer assistance with: notification costs; credit monitoring/restoration; replacing corrupted or lost data; regulatory defense, fines and penalties; multimedia liability; cyber terrorism, and cyber extortion.
Typically, there are a number of different coverages available. To have the coverage that is right for your company, we can work together to tailor the your insurance plan based on the specific risks your business faces.
Who Causes a Breach?
A data breach can be caused by an employee, competitor, hacker, foreign government, or even a terrorist.
Who needs Cyber Liability Insurance?
Consider how your business would be impacted by a shut down of your computer system due to an outside hacker, a virus, or a threat to shut down your system. Then consider the cost of a breach of your customer’s personal information, including notification costs, credit monitoring, and the cost to rebuild your reputation and restore customer confidence.
Some of the most common businesses to experience a date breach include:
- Healthcare Organizations (hospitals, clinics, labs, physician offices)
- Law Firms
- Insurance Agencies
- Banks & other Financial Institutions
- Hospitality & Entertainment Companies (restaurants, hotels, movie theatres, etc.)
- Schools & Universities
What We Need to Quote a Cyber Liability Insurance Policy?
Cyber liability insurance is easily tailored to the needs of your business and is affordable. All we need is:
- Number of Records
- Industry/Service Provided
- Past Claims History
- Security Measures
If you are interested in learning more about a cyber liability policy for your company, please contact us for more information.
The information in this article was obtained from various sources and is not all inclusive regarding the subject matter. This content is offered for educational purposes only.