Protecting Your Business in the Age of Costly Cyber Attacks
Posted on: October 6, 2017 by Signature Insurance Group
It’s a nightmare come true for even the biggest and best among us: Equifax, Target, Yahoo, and even JPMorgan Chase. As of October 2017, we can even add Sonic drive-thrus and Whole Foods to the list of a growing number of victims of cyber attacks that have compromised company and consumer data. These corporations spend tens to hundreds millions of dollars every year on cyber security, but when it comes to preventing data breaches, nothing is totally foolproof. The highly publicized breaches alone cost billions of dollars, and that’s just for starters.
The threat of cyber crime is even more daunting for small- and medium-sized businesses. Forbes reports that 55% of small- and medium-sized businesses experienced a cyber attack in 2016 with damages averaging a whopping $955,429 per company. It’s not hard to imagine, then, that one single breach can put a company out of business for good—unless they protect themselves with insurance designed specifically for this common scenario.
Indeed, Cyber Liability insurance is often the deciding factor in whether a breached company goes under or not.
Who needs Cyber Liability insurance?
Pretty much every business will benefit from Cyber Liability insurance. In fact, the more apt question these days is who doesn’t need this protection. The truth is that modern day business practices necessitate electronic data transmission and/or storage, a risk that’s nearly impossible to avoid.
Many business owners assume they don’t need this insurance because they are not in a ‘techy’ field. It makes sense to assume that e-commerce or otherwise web-based businesses would be at risk, but so are brick-and-mortar locations, contractors, and most other businesses.
So who is most at risk of a cyber attack?
- If your company accepts credit card payments through a POS, you’re at risk.
- If your company stores customer information, you’re at risk.
- If your company deals at all in sensitive information, such as medical records, social security numbers, or other private data, you’re at risk.
- If you allow third party vendors to handle customer information, you’re at risk.
- If you deal with proprietary information, patents, designs, copyrights, and other information that may have value on the black market or to competitors, you’re at risk.
- If you conduct any business online, you’re at risk.
How Cyber Liability insurance can save a business
The costs associated with cyber attacks are steep. The IT work, attorney fees, and government fines can be tremendous, but they often pale in comparison to the loss of business and need for restorative marketing. Losing consumer trust is harder on small and medium businesses, since there are usually more competitor options for customers.
Cyber Liability insurance comes in a variety of forms. It’s vital that every business consult with an experienced insurance agent to determine what areas and levels of protection they need. Web-based businesses may need different coverage than retail stores and restaurants where the POS system is the biggest vulnerability, but nearly every business will need some form of Cyber Liability coverage in today’s high-threat environment.
About Signature Insurance Group
Signature Insurance Group has been working since 1969 to provide comprehensive insurance solutions to individuals and businesses across the United States. We offer a range of insurance products and services in risk management, employee benefits, business insurance, and personal insurance, and we pride ourselves on our commitment to creating “Signature Relationships” with our clients where we commit to providing the best, most comprehensive service possible. To learn more about our goods and services, contact us today at (800) 464-3606.