Why All Companies Need Cyber Coverage
Posted on: October 13, 2015 by Signature Insurance Group
Cyber breaches are becoming a frequent topic in the news as more information is being stored online. What you don’t hear in the news is that cyber attacks are not just affecting large companies like Target and Chase, but are more commonly affecting smaller companies. Data breaches take a major toll on companies but as long as you have a great Southern California Cyber Liability Insurance plan in place, recovery can be more manageable. Below we will discuss the high costs of data breaches and why cyber liability coverage is so important.
When someone hacks into your computers to steal information they are obtaining not only confidential business information but also personal information on you, your employees and your customers. With that information they can steal millions of dollars from your customers as well as out of your business. Recovery from such breaches can cost thousands in fines as well as a few other expenses including:
- Business Interruption- Many times, in the days and weeks after a data breach, a company closes its doors while they investigate the cause of the breach. Once doors are opened again, many customers have lost confidence in their security at your business and stay away for a while. Between the times spent investigating and the lack of customer confidence the company loses profits.
- Security Updates- Once a company has been breached, the company must do a complete security overhaul. This means time and money spent on new software and the training of personnel.
- Customer concerns- After a data breach customers tend to lose faith in the company that allowed their personal information to be compromised. As a sign of good will towards customers many companies offer temporary free credit monitoring, discounts and other perks to try and draw customer’s loyalties back towards them. While this may bring customers back, it is costly to maintain.
- Bankruptcy- As is often the case, small companies cannot financially recover on their own from the costs of cyber attacks. Between the stolen information and the expenses in the aftermath, many companies must close their doors permanently.
Having a good cyber liability plan can help cover the costs of cyber attacks including, loss of profit, customer reimbursement, security overhauls and more.
At Signature Insurance Group we know how devastating cyber attacks can be. Call us today for more information on how we can help you get the coverage you need. 855.972.9437