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Does Your Business Need Cyber Insurance?

We have all heard of the hacks at Target, Home Depot, P.F. Chang's and even the government. But did you know it's not just big companies that hackers love? In most cases it's much easier and quicker to hack a small company with 250 employees or less. Unfortunately, small businesses often do not have the resources to successfully weather such an attack. In fact, 60% of small businesses that suffer a cyberattack will close within 6 months following the attack. So do you need Cyber Liability coverage? If you answer yes to any of these questions, you need a Cyber Liability policy. 1) Does your business store sensitive customer or employee data? 2) Does your business accept credit card payments? 3) Does your business bank online? 4) Does your business use Facebook, Twitter or LinkedIn? Not only do you need the coverage, but most states have passed laws that require you to protect the personal data you store and notify your clients, employees, etc. when you are a victim of a cyber breach. And it's not just the state that you do business in. If you have clients in Ohio, Texas, Florida, etc. you have to abide by that states requirements. If you 500 clients that reside in 4 different states, the estimated cost to notify them that their personal information may have been hacked is around $8,700. If you have 1000 clients that reside in 2 different states, the cost of notification is almost $9,900. What about the cost of lost business while your network is out of service or otherwise unavailable? What about the costs associated with any fines, penalties or settlements that you need to make? Most insurance carriers can now add Cyber Liability/Data Breach coverage in smaller limits to your current insurance policy for a very minimal premium. Can you afford to wait to add or purchase coverage? #cyberattack #databreach


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