[BreachExchange] Why your business needs cybersecurity insurance

[Audrey McNeil]

http://www.bizjournals.com/buffalo/news/2017/03/09/why-your-business-needs-
cybersecurity-insurance.html

Data breaches have been occurring more frequently, and it is not just
happening at large big-box retailers.

In fact, most cybersecurity attacks target businesses with less than 250
employees because their security may be more vulnerable. So no matter the
size of your business, it is important to manage the risks related to a
data breach and reduce the significant costs that can result from one. Now
might be the time to explore how cyber security insurance may protect your
business.

Standard business and property insurance does not cover certain information
or data, which includes, but is not limited to, your customer information
like Social Security numbers, credit card numbers or other personally
identifiable information that could be valuable in the wrong hands. Cyber
intrusion insurance may be able to cover the event of a data breach.

Cyber liability insurance can also cover the cost if your business is down
due to a network disruption or system error. If your business was not able
to take orders or collect any payments due to your system being down,
cybersecurity liability insurance could cover this disruption and the
subsequent loss of profits due to a system fail caused by a virus or an
attack.

Here are reasons to consider cyber liability insurance for your business:

It probably covers more than you think– Many cyber security policies offer
“first party” coverage, meaning they will pay you for things like business
interruption and the cost of notifying customers of a breach as a result of
a cyber-attack. Without this insurance, you could be held liable and face
severe penalties.

You are protected if your cloud provider messes up– If your website is
hosted or stored in the cloud, you’re still legally responsible. You can’t
fully control the way that a cloud provider handles your data, but this
insurance policy can protect you if your cloud provider makes any mistakes.

Social media sites expose information with little control– Your business
site and your employees’ activity on social media can trigger liability if
your business is responsible for the sites. Defamatory statements, leaked
information and copyright infringement can all be covered with a cyber
liability insurance policy. Losing the trust of your customers can be much
more damaging than the financial loss you will incur to repair the effects
of the breach.

Cyber liability insurance has been available for almost 10 years; however,
it’s rarely purchased. The data and information of your business is
probably worth much more to you than the equipment on which it is stored.
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