“Data Breaches” or “Cyber Attacks” can happen to any business at any time, but for some reason getting organizations interested in this type of coverage is quite challenging as it is a brand new concept that most people are just becoming aware of. Keep these 5 misconceptions in mind when considering cyber liability coverage.
1. “Data breaches won’t happen to me!”
Actually, any business large or small is vulnerable to “data breaches”, According to Symantec Corporation, small businesses are actually the ones most commonly targeted.
2. “Our insurance already covers this?”
If your policy doesn’t specifically say that you have “cyber liability” coverage you most likely aren’t covered. Also, you may think your general liability covers this, but quite often it is not flexible enough to cover new cyber perils and with the average cost of a cyber attack exceeding $619,000 per event, your going to want the coverage.
3. “We only use vendors for our business!”
Regardless if you outsource your IT work you can still be held liable as the business owner for customers personal information lost through a cyber attack as you are liable for the website, not the vendor unless you get them to agree on a contract.
4. “We have the best cyber coverage on the market!”
When it comes to this always evolving environment “online” there is no perfect remedy for this problem. Even the government who have the best security protection aren’t safe. That is why they have tons of policies in place to combat cyber liability and to guarantee their peace of mind.
5. “The cost associated with a cyber attack isn’t significant!”
When the average cost is about $270 per stolen record from a mid-sized or small business a cybersecurity event could cost $46,000 or more, for bigger businesses they have cost them millions.