Business Insurance

Cyber Liability Insurance: Are You Covered?

By January 31, 2017 No Comments

Cyber Liability Insurance

Your business needs Cyber Liability Insurance.

We are living in the digital age; there is no doubt about that. As technology continues to get smarter and more efficient, so do criminals. Digital crimes, or cybercrimes, as they are more commonly known, are crimes that involve computers or the Internet. Hacking, data breaches, credit card theft, cyber bullying, identity theft and piracy are all forms of cybercrime.

According to the most recent statistics from the Bureau of Justice Statistics, 67 percent of businesses have detected some form of cybercrime. Nearly 60 percent detected more than one attack. While only 11 percent of these cyber intrusions resulted in actual theft, the numbers are shocking.

As more businesses turn to the Internet for additional revenue streams, the possibility of falling victim to a cybercrime increases. Small businesses are especially susceptible to cybercrime.

How Cybercrimes Affect Small Business

While it is cyber-attacks at large corporations such as Target and eBay that garner headlines, small businesses actually take the brunt of the crimes.

In 2015, 43 percent of all cybercrimes were committed against small businesses, according to data from Symantec’s 2016 Internet Security Threat Report. That is up significantly from 18 percent in 2011.

Hackers and other cybercriminals target small business because they are more vulnerable, research shows. Criminals are not discriminatory when it comes to the types of businesses they target. They are all after the same thing: your money.

Many of these attacks are targeted at your employees, not your customers. An employee receives a malicious emails with a virus attached, which opens your network to outside intrusion. This is known as Phishing. It not only gives hackers access to your business financial information, but that of your customers and employees as well.

Here are a few tips to prevent cybercrime:

  1. Train your staff: A bulk of cyber-attacks target employees. Educating your workers on how to detect malicious emails and what to do if they believe they have fallen victim to a cybercrime is crucial to limiting the damage.
  2. Have a plan: As the likelihood of becoming the victim of a cybercrime increases, having a plan in place will expedite a resolution and limit the total damage.
  3. Limit the number of devices connected to your system: Hackers gain access to your sensitive information through openings and weaknesses in your cybersecurity. The more devices connected to your network, including employees accessing your Wi-Fi network, the more vulnerable you are to attack. Smart devices that access the Internet often provide easy access for hackers.

Still, when a cybercrime is committed, it is important to know you are protected from the fallout. This is where cyber liability insurance comes in.

What is Cyber Liability Insurance?

For the most part, but not exclusively, cyber liability is a business insurance policy that covers your business when a cybercrime, such as a data breach, occurs. When criminals steal your business, employee and customer information, the extent of the damage can be incalculable.

Depending on the type of sensitive information being stored – social security numbers, bank account numbers, and other personally identifiable information – your liability can be great.

A cyber liability policy can cover many of the costs associated with cybercrimes, including:

  • Notifying customers, employees and business partners of the breach
  • Credit monitoring costs
  • Court costs
  • Fines and penalties
  • Losses resulting from the crimes

It is important to note that cyber liability insurance policies are not just for computer-based data breaches. These policies also cover hard copy data breaches. Meaning if a thief, or even an employee, steals hard copy documents or records, the same protections apply.

For more information on cyber liability insurance, or to find out if your business has the proper protections in place, speak with a licensed insurance professional at Brashears Insurance today by calling (805) 564-7645.