Professional services such as accountancy, physicians, and law have unique risks. Clients may file claims citing negligence, misrepresentation, and malpractice. General liability insurance policies don’t safeguard you against such claims.
Cyber Liability Insurance helps businesses who are victim to data breaches as well as cyber-attacks continue their operations, by paying for recovery expenses. Typically it pays to notify customers, monitor credit, and legal fees after a business has a breach.
Not having Cyber Insurance coverage can result in costs that can devastate your business. A report from IT security company Kaspersky, states the average expenses incurred by a small business data breach is $86,500. Even though many small to medium sized business owners do not believe they are targets for cyber-criminals, it’s quite the contrary, they are prime targets. A report published by Property Casualty 360 stated that 62 % of all cybersecurity attacks directly impacted small, & medium sized businesses.
Cybercriminals drawn to small business owners because many of them
- Take payment by credit/debit cards.
- Store sensitive client information.
- Transact business via online or cloud-based.
You may want to consider this protection if your business handles any of the following:
- Customer payment, credit, or bank account information.
- Medical information.
- Social Security
- Customer names, email addresses, driver license numbers, and addresses.
Businesses in Retail, healthcare, and financial services, are hot targets for breaches and cyber-attacks. Unfortunately, all it really takes is one honest mistake by an employee, unauthorized access by an old or ex-employee or vendor, a document that wasn’t shredded, or a stolen laptop to cause a breach.
It can happen to any business, at any time which is why cyber insurance has become a necessary precaution.