Cyber Liability Insurance? What In The World Is That?

Everyone loves and lives by the internet, but, wow, can it be a dangerous place.

We can’t really complain that there’s a downside to the digital world. After all, look how convenient technology has made our lives. We can find food without having to go look for it. We can deposit checks without waiting in line at the bank. We can see people halfway around the world without being there with them in person. Nevertheless, all of these cyber luxuries come with a cyber risk.

Is Your Business Vulnerable to a Data Breach?
According to the Identity Theft Resource Center, there were 1,579 data breach incidents in 2017. That’s a record high, and a 44.7 increase from the previous record high in 2016. Even worse, nearly 20 percent of the 2017 breaches included credit and debit card information, and the total number of records compromised rose by 88 percent.

We’re not going to go further down the rabbit hole of statistics, but we need you to know that it’s not just the big businesses being breached. What makes the growing number and impact of data breaches even more alarming is the fact that so many business owners don’t realize they could be sitting ducks for cyber fraud, including those who:

• • Use a computer or mobile device to receive or process payments
  • Install any equipment connected to the internet
  • Use email to share potentially sensitive information (even with encryption!)
  • Store employee information on a computer
  • Send new employee information to a payroll company via email
  • Store client information on a computer
  • These are just a few examples of everyday business activities that could be breached by hackers. We could go on for days, we tell ya.

Why Every Business Needs a Cyber Liability Policy
Cyber liability insurance – or simply, cyber insurance, – is coverage you can purchase to protect your business from lawsuits in the case of a data breach. Let’s say hackers are able to break into your system and steal a bunch of your clients’ and/or employees’ financial information. A cyber liability policy would cover your responsibility for losses or other damages suffered in the breach.

It’s important to understand that credit card companies, financial services providers and other vendors do not provide this type of protection for your business. You have to have your own cyber policy in place.

Additional Benefits of Cyber Insurance
Aside from covering legal expenses and fees, cyber insurance can also help with notifying customers of a breach, recovering hacked data, repairing damaged software and more. Like with any other insurance, the hope with a cyber policy is that you never have to use it. If you ever do, though, it will save you all sorts of headaches in the days and weeks following a breach. The best part is that it’s relatively inexpensive to add to your current business coverage.

So, what do you say? Are you ready to put an extra padlock on your business insurance? Contact Anderson Insurance Agency, the good guys of insurance in coastal New Jersey. We’ll help you find the right cyber policy to add to your current coverage.