Cyber Insurance Is Serious Business
Unfortunately, data breaches and other cyber crimes are becoming way too common. In the past couple years, data breaches have resulted in major fines and legal fees - not to mention headaches - for a discount retail chain, one of the nation\'s largest banks, a well-known health insurer, an entertainment network and the federal government.
But it's not just large organizations that are susceptible to being hacked or getting a virus. Did you know that 55% of small businesses have experienced a data breach and that 53% have had multiple breaches?
"PNW Insurance Group had always been quick to help our business with renewals and new policies. Kathy is helpful and friendly and goes the extra mile to remind me when she needs something. I so appreciate this. As a business owner you juggle so much and it is easy to miss an email or request. Thanks team PNW!!"
Commercial Insurance Client
"After years of managing my own insurance needs, I met with Sarai Sward at PNW Insurance Group. After a bit of time, I pulled the trigger and moved all of my insurance over to her and her team. Couldn't be happier. Now I can do what I do and she manages all my insurance needs."
Commercial Insurance Client
Won't My Current Insurance Cover Cyber Damages?
General liability insurance covers bodily injuries and property damage resulting from your products, services or operations. Cyber insurance is often excluded from a general liability policy.
Most states require companies to notify customers of a data breach involving personally identifiable information, which is a process that can be very expensive, but at the same time the least of your worries should such a claim arise.
What Cyber Insurance Covers
These are just a few areas in which a cyber insurance policy will protect your business. Don't know what some of these mean? All the more reason to talk to one of our cyber advisors.
According to the National Institute of Standards and Technology:
Any kind of malicious activity that attempts to collect, disrupt, deny, degrade, or destroy information system resources or the information itself.
Cyber insurance covers your business' liability for a data breach that includes sensitive customer information. This could include things like Social Security numbers, credit card numbers, account numbers, driver's license numbers and even medical records.
Why doesn’t my general liability insurance cover cyber liability?
General Liability covers bodily injuries and damage to property which is a result of your products, services or operations. Be sure to check your policy because cyber insurance is usually not included in your general liability policy
- Legal fees and expenses as well as:
- Restoring personal identities of affected customers
- Notifying customers about a data breach
- Repairing damaged computer systems
- Recovering compromised data
- What to look for as a cyber insurance buyer
Like any business insurance, cyber insurance coverage varies by insurer and policy.
That is a huge misconception, one we are here to try to break! Can it happen to small business? Does it happen to small business?
45% of Cyber Attacks are against small business. It is estimated that 90-95% of successful attacks stem from a business owner or employee falling victim to social engineering scheme. Read more about social engineering here.
Here a some of reasons experts suspect that smaller businesses are getting hit so often and so hard - and with alarming increase in cases (one is hit every 19 seconds).
- Many small businesses don't have the time, knowledge or resources to properly protect themselves and hackers know that. You can break that theory by following Educate, Manage Risk and Recover approach.
- Most small businesses use email for communication, one wrong click is all it takes in some cases! Hackers excel at their game of trickery more and more every day, making emails look more and more "legit" all the time. It is so easy, in our busy world, to drop your guard and click. Damage done. The Social Engineering endorsement on your cyber policy will help.
- Many small businesses think they would only need cyber insurance if they have a "server" or "hold records". This is not the case at all. If you are operating in any kind of digital environment - you are at risk. How much risk? That answer would require further conversation. We'd love to chat. Click here to for contact information and request.