The Cyber Risk
Cyber crimes and data breaches have become daily news items. While governments and large corporations are often the most publicized targets, small business are equally at risk. More than half of all small businesses have experienced some type of data breach. What should your business know about cyber liability?
Cyber liability claims typically involve a data breach involving sensitive client information. Such information could include account numbers, driver’s license numbers, Social Security numbers, and credit card information. A data loss of this type could potentially ruin a company. Expenses from even a small data breach add up quickly.
Notifying clients of any potential information breach is required by most states. This process alone can be very costly depending on the number of customers involved.
In order to adequately protect a business in the event of a data breach, cyber insurance should be purchased. This coverage includes costs resulting from:
- Notifying customers that there has been a breach
- Legal expenses and fees
- Recovering lost data
- Repairing compromised electronic equipment
- Restoring customer identities
If your business maintains any type of confidential client information, make sure you schedule some time to discuss cyber liability solutions with an insurance professional. The cyber risk continues to grow each day, but your company’s future will remain secure with the correct insurance coverage.