Why Is Cyber Liability Insurance So Important?

Cyber Liability Insurance is a critical requirement for all companies so we are determined to provide you with the information you need to make the right risk protection decision.

It seems like every day we hear about a new data breach. Computer hackers have hit major retailers, government databases, and even one of the top credit bureaus.  High profile crimes make the news, but cybercrime is even more prevalent among smaller businesses.

cyber liability insurance Post Insurance Torrance CAAccording 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.

The Cost of a Data Breach

Kaspersky Lab says that the average cost of a data breach grew from 1.2 million in 2016 to $1.3 million in 2017. Projections show that cybercrime costs are expected to hit $6 trillion annually by 2021.

A 2018 study, conducted by Ponemon Institute and sponsored by IBM Security, reveals that the average cost of a data breach sits at $3.62 million globally.

Can your company handle the costs of a clean-up if a data breach does occur?

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 must for all companies who handle any kind of customer data.

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.

  • Email Addresses
  • Names and Home Addresses
  • Credit Information
  • 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 insurance.

 

Learn more about Traveler’s Cyber Liability Insurance by contacting Post Insurance.

What does Cyber Liability Insurance cover?

Apart from the costs of repairing your computer system and recovering client data, you may wonder what other types of expenses are involved in cybercrime.
  • 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
Since digital crimes are such a prevalent problem, many insurance companies also offer training for businesses. This training helps you minimize the risk of a cyber attack before it occurs.

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, Torrance insurance agency that offers the largest number of insurance options in the area.

Contact Post Insurance today and let us help you put together the commercial insurance package best suited to your needs.

3 Comments

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