An online tech report for USA Today on December 9, 2014 had a lot to say on the impact of damage from a cyber breach. The report highlights that small business owners can protect themselves from cyberbreaches with cyber liability insurance. “In some ways, just the process of getting the insurance is protective. It makes companies look closely at their risk. That includes things like who has access to what data, where data is stored and whether any third-party vendors pose a risk.”
An August 2013 survey done by the Ponemon Institute, an independent data security organization, found that 76% of business owners who’ve experienced a cyberbreach say it is at least as disruptive as natural disasters and fires. In addition, the average cost to remediate is now $201 per record.
According to a 2014 survey conducted by Marsh & McLennan Agency only 33% of small- to mid-sized companies have a cyber liability policy, an increase over 2013, which came in at 16%.
While large cases like Target and Sony Pictures grab the headlines, Main Street business are not immune to cyber breach risk. These businesses process credit card transactions, keep employee records, and in many cases have a website that collects information from visitors and customers.
Cyber Liability and Data Breach Expense coverage is an essential safety net for any small business. The premium is comparatively small for the great value received and it complements the coverage a business owner carries in their business owner policy. If you have any questions regarding this important coverage please feel free to call my office!