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Data drives the organizations of today’s world. These days, it seems like every time you turn on the evening news you see reports of cyber-attacks. The major problem with cybercrime is that everyone out there is at risk of becoming a victim, from the small and midsize companies all the way up to the New York Times and even the White House. The average cost to rectify a breach is rising to $6.5 million per occurrence.
In addition to hackers breaking into your company’s system, there are a number of other ways for data theft and tampering to occur. If an employee keeps company files or customer data on a laptop so they can work on the go, that computer could be stolen or lost. An unauthorized person may make their way into your offices and gain access to a company computer. A disgruntled employee with access to your system may decide to wreak havoc through data corruption, or even paper records falling into the wrong hands can create a financial and reputational consequence affecting your business for years to come.
If you own a company that collects and keeps sensitive customer information on your database, such as contact information, credit card information, medical records, social security number, etc., then you could be the next cybercrime victim featured on the evening news.
Unfortunately, many people are under the impression that a general insurance policy is all that you need to protect business cyber risks, especially the smaller companies. This means that proper coverage is the only way to make certain you are well protected against the loss or misuse of sensitive customer data.
In order to better understand exactly why you need Cyber Security Insurance, you need to understand the exposures that your particular business faces. A cyber-attack is not something that only impacts Internet based businesses. The loss or exploitation of customer data could come in the form of a problem with computer hardware, system backups, communication media errors or operation errors. Some issues may arise in relation to fraud or errors that are committed by people working internally in your company, such as a system administrator.
You see, there are actually three main things that put your cyber security at risk, which includes natural disasters, human error and intentional acts. Natural disasters are the most common cause of loss and errors, primarily from severe weather. For instance, your entire database may be damaged or even completely destroyed by a surge of power or a lightning strike.
Human error is the unintentional acts that can take place, such as an employee leaving a laptop open at an Internet café when he step’s away for a refill. Imagine an employee reading up on an important client as they wait in the airport terminal. As they browse through invoices, payment history, etc. a wandering eye jots down a few numbers and your company is suddenly liable for the extensive damage that occurs.
Finally, the most popular reason that many companies invest in Cyber Insurance is intentional criminal activity. This can happen outside of your organization by a random cyber-criminal or hacker. However, it can also be the work of someone that works for your company.
Regardless of the type of cyber risks to which your company may be exposed, the financial consequences as well as the damage it does to your reputation can be devastating, especially for a small business. Therefore, Cyber Liability Insurance is the first and most important step in protection, while routine database cleanings and the establishment of new, improved cyber protocols are also vital.
What does cyber liability cover?
With a comprehensive cyber liability policy, you can feel confident you’re covered in case of data breaches and related issues, including:
We can help protect your business against damage to electronic data, virus or malware attack, liability to third parties, and also help recover the cost of:
Who is cyber liability insurance for?
Cyber liability coverage is available for any business, small and large, nonprofit organizations, and retailers. You may be able to save on costs by bundling coverage with another policy to create a comprehensive suite of business liability coverages.
We can help you assess the risks to your business and get you the protection you need in today’s data-reliant world.
Let a trusted Putnam Record Insurance Agency team member help you by analyzing the risk factors that apply to your business. Your agent will evaluate your Cyber Security Insurance needs and help you choose a policy that will work best in your specific situation.
At Putnam Record Insurance Agency, our greatest concern is the well-being of your organization. We are dedicated to providing you with the most comprehensive Cyber Liability Insurance coverage at the best possible price, while remaining dedicated to providing the quality customer service that you deserve.
Contact us today, and we’ll help you protect what mattesr most.