This past year, several large companies including Linkedin, Zappos, LivingSocial, eHarmony, and Yahoo! all became victims of cyberattacks resulting in the loss of millions of dollars. Maybe even more importantly, the cyberattacks also meant that millions of people had their private information stolen. While one might think that it’s only the large companies that are in danger of these types of cyber risks, a recent study done by Verizon Communications Inc found that 72% of the reported data breaches happened to small businesses. This is an alarming number!
What many business owners don’t realize is that general liability insurance typically doesn’t cover the risks associated with cyberattacks. With the majority of personal information being stored online and in other private networks, companies need cyber liability insurance more than ever. Imagine your client’s personal information is stolen, most likely including social security numbers and credit card information. Would you be prepared to pay for the crisis management and public relations fees associated with this type of intrusion? That’s exactly the type of situation that a good cyber liability policy would cover.
What about the cost of the policy? The good news is cyber liability insurance is more affordable than ever! In today’s complex world, one can never be too careful. So don't be caught by surprise—prepare ahead of time so that when a cyber crime happens, you’re prepared to respond quickly and effectively to help your customers keep their trust in your business.