If you think about it, your business probably has any incredible amount of sensitive information. You may have personal data about your employees, business data about your clients, and credit card / payment information for your customers.
Cyber Liability Insurance (also called Cyber Risk Insurance and Data Breach Insurance) protects your business when you suffer a cyber attack that compromises the security of your network. This insurance can be purchased as a standalone policy or included with a Business Owner's Policy.
Small Businesses Are at Risk: The Truth about Cyber Crime for Authors, Translators, Medical Billing Professionals, Notary Publics, and Other Specialty Service Providers
Small businesses are actually much more likely to be the victim of a cyber crime than larger ones. In fact, over 70 percent of cyber crime happens at businesses with fewer than 100 employees. You may think that your business is safe from hackers and other cyber criminals, but in fact they target you precisely because your business is smaller.
Small businesses are less able to defend themselves from an attack. They have less secure networks and fewer resources to pursue cyber criminals after the attack.
What is a Cyber Attack?
Cyber criminals target business like yours in order to steal information, money, identities, and more from you and your customers. They can use a variety of methods to hack into your network.
When this happens, you will be legally obligated to your report this security breach to each and every one of your affected clients and customers.
Yes, indeed. Can you imagine having to call and / or email each client or customer and tell them that their social security number, credit card information, or other personal data has been compromised?
Yikes. This is precisely why cyber crime is so costly. Not only do you have to figure out what happened to your business, how your security was breached, and whether you lost any money, but you'll also have to deal with all your dissatisfied or angry customers.
A Cyber Crime Case Study for Medical Billing, Notary Public, Pet Grooming, and Legal Services Companies
Thursday afternoon you get a call from your IT employee telling you that your network was hacked by a cyber criminal. You have no idea how it happened or who did it. You have 5 years' worth of customer and employee data that may have been compromised.
First things first. You have to shore up your network. You and your IT employee spend hours on the phone with the customer service of your various security software providers, but they seem to know less than you do. You purchase all new software in the hopes that this provides better security, but still aren't sure how you were attacked.
The next day you spend out a mass email to each of your customers and personally call a number of your important clients. Having to send out all those emails is like giving yourself a bad referral. A thousand bad referrals.
As a small business you likely grew your business at least partially by word of mouth. Now the same process is threatening to tear apart your base. And we haven't even gotten to a lawsuit yet.
If one of your clients or employees sues you for damages over the loss of their private data or because of a stolen identity, Cyber Liability Insurance can help pay for the legal costs including lawyer's fees, settlements, court costs, and other expenses.
How Cyber Liability Insurance Works for Lawyers, Medical Billing Companies, Travel Agents, Employment Agencies, and Other Specialty Services Companies
Cyber Risk Insurance offers two levels of protection…
- First-party response.
- Third-party defense and liability.
For the most part, professional and specialty service providers will require only first-party Cyber Liability Insurance. First-party coverage funds the cost addressing a data breach that compromised your data and affects your clients. Coverage offered by first-party Cyber Risk Insurance policies includes…
- Investigative resources to help you figure out how this security breach occurred.
- Reimbursement for costs to notify your customers, clients, and employees whose information was exposed.
- Public relations and good-faith advertising campaigns to improve your business's reputation.
- Business interruption coverage for additional employees and equipment you need post-attack.
- Reimbursement for extortion attempts.
Third-party defense and liability coverage is primarily needed by IT and tech companies. It covers the costs associated with addressing the fallout of a data breach caused to a client that affects the client's customers. To find out whether your firm has a need for third-party Cyber Risk coverage, check with an insureon agent.
Talk with an Insurance Professional: Fast, Easy Liability Insurance for Your Small Business
Depending on the nature of your business, it may make sense to purchase Cyber Liability Insurance. Our agents can help you decide if you need coverage, and if so, how much is applicable. Contact an expert today.