Unless your company has disconnected its Internet, cyber liability insurance must be a strong consideration for your business. Cyber attacks are a common and persistent business threat. It's why your company likely undertakes some sort of cybersecurity measures, from antivirus software to more robust cyber solutions.
But what happens if cyber thieves breach your best defenses? Here, cyber liability insurance can be the difference between major out-of-pocket expenses or a more manageable resolution.
A 2015 study of 160 cybersecurity incidents by risk assessment firm NetDiligence found that the median data breach exposed 2,300 records, with a median cost of $13 per record.
For bigger firms, these are perhaps costs more easily borne. But for smaller companies, the costs of a cyber breach could be tougher to bear.
And firms of all sizes can be targets for the criminally minded.
Last year, a Travelers executive noted that 62 percent of cyber breaches occurred at firms classified as small- or mid-sized, according to PropertyCasualty360.com. Furthermore, a 2016 study from Verizon found that 447 companies with 1,000 or fewer employees suffered data breaches the previous year, with more than 100 such-sized companies in the accommodation and retail industries reporting that data had been accessed by unauthorized parties.
In short, all businesses have reason to think about cyber insurance. Yes, there is a cost associated with coverage. The alternative, however, is taking on the downside risk of a breach. And then there is the matter of not having cyber insurance and your board of directors asking a chilling four-word question:
"Why aren't we covered?"
Cyber liability insurance can be just the safety net your company needs. Cyber coverage helps companies bear the costs of a cyber breach, including notification, monitoring and legal services. Many or all of these services may be simply essential in the event of a cyber attack.
The Plexus Groupe's property & casualty experts can help you ensure your bases are covered when it comes to cyber insurance. For more information, contact us at 847-307-6100 and ask to speak to a client executive. Risk management is our passion; let's a have a conversation.