Did you know there were 560 million cyberattacks last year? That equates to 18 victims per second and a whopping 1.5 million victims per day.
Your customer's data can be stolen within minutes of a cyberattack once a hacker gains access to your network. We have all heard about recent large corporate breaches that happened at places like Target and Home Depot. However, 62% of all cyberattacks happen to small and mid-sized businesses.
Often, despite a company’s best IT precautions, a hacker gains access to information when employees unknowingly open phishing emails, use common passwords or mishandle client-sensitive information.
The biggest threat to a small business owner, just behind weather and natural disasters, is a cyberattack.
The costs associated with an attack are significant and increasing each year. In fact, 60% of companies go out of business because they are unable to recover from a single cyberattack. Educating your employees is a major step in protecting your business and your customers from a data breach. Your employees are the defense and having correct insurance coverage is important as well.
A standard Business Owners Policy (BOP) policy does not include coverage for a data breach or cyberattack. The best way to protect your business and clients is by adding the following endorsements onto your BOP policy.
#1 - Cyber liability coverage is a custom policy that includes first and third-party coverages. It is customized to your business needs based your operations and exposures.
#2 - First-party coverage applies to the loss of or damage to your own data that is caused during a data breach. The most common first-party coverages are notification costs, the expenses to notify your clients that you have experienced a breach.
#3 - Third-party coverage involves your liability to your clients or the government and regulatory entities. The most common third-party coverages are the damages paid to a third party because of a breach.
First-party loss examples include:
Third-party loss examples include:
As we kick off a New Year, it is a great time to look at your cyber awareness and protect your business. There are many tools and services you can use to protect yourself against a data breach. They can be found through your existing insurance brokers or other business relationships.
Provided by Bryan Mosser, Vice President of Sales and Marketing for Cornerstone Insurance Producers.