These days even the most old school of business involves technology in some way, whether it be email, cell phone usage, a credit card machine, or even an online customer database. Even the smallest business with only a small amount of online interaction may be vulnerable to cyber hacking or attacks. Every business can benefit from some level of Cyber Liability coverage.
Are You At Risk?
Does your business engage in one or more of the following activities?
- Is your business connected to the internet?
- Do you have a business website?
- Does your website have a customer support forum or message board?
- Do you do any internet advertising?
- Do you participate in e-Commerce?
- Do you do online payments or credit card processing?
- Do you store customer data?
- Does your business do web design or provide media content?
If you said yes to any of the above then your business is at risk for data breaches, security issues and even lawsuits for things like copyright infringement, intellectual property theft and plagiarism. Cyber Liability insurance can help.
Why You Need It
In just one week, virus removal software companies identified 30 new computer viruses to add to the long list of thousands (possibly millions) of known viruses from around the world. Each of those can be transmitted in a number of ways, including email, instant messaging, malware and malvertising.
Data breaches may also occur via accidental means such as an employee losing a laptop. Less accidental ways may include employees revealing passwords or customer information on social media. In fact, your employees may be more of a threat to your cyber security than hackers.
The losses due to global cyber crimes are estimated at $400 billion per year. In just one year, companies like Target and eBay were hacked, as was the federal government (click here for a list of recent breaches). Big companies like these make the news, but small businesses may be even easier to breach, and the cyber crime may go unnoticed for even longer.
Cyber Liability Coverage Can Help
Data breaches can be costly. When you think about all of the ways a data breach can affect your business, the financial losses add up quickly:
- Governmental regulations for customer notification of compromised personal data
- Financial losses to customers
- Provision of credit monitoring to affected customers
- Lost business revenue for computer/network outage
- Lost business revenue due to loss of reputation (public relations/crisis management)
- Forensic assistance to determine the extent of the breach
- Legal assistance to help comply with applicable laws
- Regulatory defense and penalties
A data breach or hack doesn’t have to mean the end of your business. Contact Hayes Brokers to find out how a Cyber Liability insurance policy can help protect against all of these losses and more.