We continuously hear about data breaches in big corporations. In the past couple of years, computer hackers have hit major retailers, government databases, and even one of the top credit bureaus. High profile crimes make the news but the problem is prevalent among small businesses as well. No matter what the size business you run, a single incident could send you into bankruptcy. Both the tangible and intangible costs are high. That is why Cyber Liability Insurance is so important.
According to data sources, 55% of small businesses have suffered from a data breach. In fact, 53% of all small business have dealt with multiple violations. Not only does it cost a lot of money to fix the issue, but there is also the intangible costs. Cybercrime can hurt your reputation and put your employees at risk. Who pays for the damages? How do you repair your company’s reputation? You must think about the ‘what if’ because someone will pay for the fall-out and it is usually the company that was breached.
Until we come up with secure computer systems, cyber liability insurance is a smart move for all companies.
What is Cyber Liability Insurance?
Cyber Insurance is a supplemental policy that picks up where your General Liability stops. Cyber Liability Insurance covers the costs associated with a data breach involving customer information. This data could be anything from Social Security numbers to health records.
Since cybercrime does not result in bodily injury or property damage (think damaged car), it falls outside the standard coverage of general liability.
What does Cyber Liability Insurance cover?
- Legal fees
- Mailing or notifying clients of the issue
- Helping to restore the personal identities of those affected
- Credit monitoring for your customers after the incident
- Restoring and recreating data
- Public relations costs
What other types of commercial insurance do you need?
Whether you are a sole proprietor or a large corporation, almost every business needs commercial insurance. Established in Torrance in 1954, Post Insurance has provided local businesses with the insurance coverages they need for over sixty-years. We are a family-owned business that offers the largest number of insurance options in the area.