What is Cyber Insurance & Does My Business Really Need It?
As a business owner you are certainly aware of the benefit that connectivity and cyberspace can offer in today’s technology based market place. But, are you also focused on the looming threats that are associated with the internet? Choosing to ignore your company’s susceptibility to hacking and malware can have a crippling effect on your small business. In this article, we will analyze the benefits of cyber insurance and determine if your business really needs Cyber Insurance.
Cyber Insurance is also known as Network Security Insurance, Internet Liability Insurance or Cyber Security Insurance and was designed to not only offer protection & reimbursement in the event of a cyberattack but also offer preventative measures to keep your company’s data safe from prying eyes. As a business owner, you know that electronic information is essential in all aspects of your business. With increasing Cyberattacks becoming commonplace in today’s business environment, protecting this information properly cannot be overlooked. Cyber risk is experiencing rapid growth and a recent study from Pricewaterhouse Coopers (PwC) found that cyberattacks increased 48% last year with roughly 117,339 attacks each day. This trend is unlikely to subside due to society’s increasing reliance on technology; making protection against cyberattacks more important than ever.
Cyber Insurance is designed for the protection of intangible data and most commonly refers to a combination of different coverages including: Errors and Omissions, Media Liability, Network Security, and Privacy. Although Cyber Coverage dates back a couple of decades, it was generally added on as an internet liability endorsement and wasn’t widely sought after. Fast forward 10 years and we have today’s Cyber Liability which offers protection to just about every type of business. If your business maintains electronic records with personal data, operates on a PC network, engages in internet commerce, or offers advice via electronic communication you could be susceptible to a Cyber Liability claim. The mere misuse of employee email can end up costing companies through litigation for Defaming content.
Cyber Security policies typically include legal liability for damages to third parties, coverage for losses caused by an administrative error, breaches in state and federal privacy protection laws, cyber extortion reimbursement coverage, and customer notification expense reimbursement. The combined cost of these expenses is generally greater than most small businesses can afford. With the cost of each compromised record averaging $188, the effect of a large data breach may end up costing many business owners everything. If your company uses computers to transfer client data, you need Cyber Security Insurance.
Moore Resources is an Independent Insurance Agency located in St. Petersburg, FL and offering Homeowners Insurance, Auto Insurance, Personal Insurance and Business Insurance. Our reach extends beyond the Tampa Bay area to the entire state of Florida. Moore Resources has regionally been dedicated to serving the local residents of Pinellas, Hillsborough, Polk, Pasco, Manatee and Sarasota counties; including St. Pete, Tampa, Clearwater, Bradenton, Brandon, Dunedin, Gulfport, Lakeland, Largo, Lutz, Palm Harbor, Pinellas Park, Riverview, Ruskin, Seffner, Seminole, Temple Terrace, Tierra Verde, Town n Country, and the Gulf Coast Beaches.
Please remember that the purpose of this blog is to present general information only. It does not interpret specific policies or coverage. In order to obtain detailed information regarding your insurance, contact a licensed insurance agent.