Cyber Monday Shopping: 10 Reasons to Buy Cyber Liability Insurance
While a number of Americans are shopping online today for “Cyber Monday,” we highly recommend that you consider buying Cyber Liability Insurance to protect your business. Here’s why:
You Have Been Entrusted
Your business has been entrusted with your client’s confidential, proprietary and personal information. Think what havoc this would wreak if your clients’ information were to be accidentally leaked, or worse, hacked by a malevolent entity. But most business owners are not aware that this risk is not covered by a standard business property policy nor a business liability policy.
A Cyber Liability Policy can provide comprehensive coverage for data restoration and rectification.
CyberCrime Is One Of The Fastest Growing Crimes In The World
New types of crime are emerging every day. It is unbelievable the amount of ingenuity and energy that goes into developing these various scams. Fake invoices, phishing scams and simple hacking are happening to your business 24/7. Even the Better Business Bureau has been attacked by phishing scams.
Cyber Liability Insurance can provide comprehensive coverage for a wide range of electronic perils. Even the ones we don’t know about yet.
Business Downtime Due To Cyber Attacks Are Not Covered By Traditional Business Interruption
All businesses rely heavily on computer and communications systems to operate their core business. If a computer hack, or a malicious employee sabotages a system, a traditional business operation policy will not address these issues.
Cyber Liability Insurance can provide coverage for loss of business profits associated with system outages associated with nonphysical outages like computer viruses or denial of service attacks.
There Can Be Severe Penalties If Retailers Lose Credit Card Data
Credit card crime is a crime that can run into the billions and the risk is being transferred back to the retailers. Merchant service agreements are increasingly making retailers responsible for providing credit card re-issuance, forensic investigation costs, and the actual fraud of using stolen credit cards. These business losses can run into thousands or even millions for small retailers.
Cyber Liability Insurance will help protect against these losses.
Your Reputation Means Everything
So why not insure it? When your systems have been compromised and client’s personal, financial and proprietary information is lost, you risk losing your clientele’s trust. That loss of trust by your clients can harm your business far more than any immediate financial loss. But you can insure your business in event of a security breach.
Cyber Liability Insurance can pay for the costs of hiring a public relation specialist to help restore this valuable trust but also insures you against the loss of future sales.
Small Businesses Are Not Immune To The Threat
Small businesses are not immune to the threat. They are perhaps more susceptible and they usually lack the technical capabilities of larger companies. They will also be lacking in the financial resources to make a comeback.
Cyber attacks are probably the greatest threat facing small businesses.
Portable computer devices have made it easier to work at home or while commuting, but the portability of the devices make them much easier to be lost or stolen. The loss of an iPad and a laptop means much more than the loss of the physical device. Your client’s data is also put at risk by the growing number of viruses and hacking devices made particularly for portable devices.
Cyber Liability Insurance can protect you from this threat.
Social Media Creates Its Own Type Of Problems
Everybody knows that social media usage is a very large part of people’s lives. It is much the same for businesses. Many businesses are using social media as a marketing tool, also employers are in some cases responsible for any inappropriate material dispersed by its employees.
Cyber Liability Insurance can help provide coverage for accidentally leaked information, defamatory statements and the misuse of proprietary materials.
Cyber Liability Insurance Policy Limits Are Too Low When Attached To A Standard Business Policy
Cyber Liability Insurance can be added by endorsement onto the standard business policy. It will usually be less expensive but the problem lies in that the coverage limits are way too low to be of much use.
It is better to have a stand alone policy that provides adequate coverage amounts.
It’s Not That Expensive
Relatively speaking, of course. It’s certainly less expensive than taking on a Cyber Liability Claim on your own.
If you are interested in seeing the pricing.