9 Reasons Why You Must Purchase Cyber Insurance Now

Risks that aren’t on the radar of many small business owners, but should be.

We put out a lot of information on cyber crime and the need for Cyber Insurance.  We do it because it’s the world’s fastest growing crime – and nobody is immune. Worse, anyone from the kid next door to your dedicated employees can be perpetrators. But worst of all, more often than not, cyber attacks aren’t typically covered by your standard property or crime policies.

If that isn’t enough to convince you that you need a cyber policy, here are nine more reasons why you do.

  1. We usually hear about big businesses being targeted by hackers, but small companies are also at risk. Small businesses typically don’t have the financial resources to rebound after a cyber attack or data breach.
  2. Data is a critical business asset, but one not covered by standard property insurance. The value of your data is likely more than that of the equipment in which it’s stored. A cyber policy offers coverage for data restoration in the event of a loss.
  3. You’ll face severe penalties if you lose credit card data. Credit card crime is a $7.5 billion industry worldwide – and growing.  Merchant service agreements will hold compromised retailers liable for the cost of a forensic investigation, re-issuing new credit cards, and even the actual fraud of the stolen cards. Even the smallest retailer can be liable for costs that can soar well into the hundreds of thousands of dollars.
  4. Your electronic system downtime due to a cyber attack won’t be covered by standard business interruption insurance. If a ransomware attack, computer virus or untrustworthy employee shuts your systems down, a traditional business interruption policy won’t cover your losses. Cyber insurance offers coverage for lost profits associated with a cyber-related systems outagePortable devices increases the risk of data loss or theft. A laptop or tablet left on a plane, a cell phone stolen in a purse snatching, or a misplaced USB stick are all potential scenarios. Your device in the wrong hands could mean big trouble. Cyber insurance can help cover the costs associated with a data breach resulting from a lost, stolen or hacked device.
  5. Social media usage is at an all-time high and your business likely depends on it for marketing. Unfortunately, sometimes not enough thought is put into what and how a message is presented. This can result in claims that you or one of your employees made defamatory or libelous comments, leaked information, or infringed on a copyright. Defending against such claims can be quite costly, and Cyber Insurance covers those costs.
  6. Third-party data is valuable to your business, but it belongs to your suppliers and customers. Guess who pays if you lose it?  Most commercial contracts and non-disclosure agreements address the security of third-party data that could trigger claims if your business experiences a data breach. Consumers, too, are frequently filing lawsuits for damages when a business loses their sensitive data.
  7. It’s expensive and time consuming to comply with breach notification laws. These laws typically require businesses that lose personal data to provide written notification to all potentially victims. Cyber policies cover the costs associated with issuing a breach notice.
  8. Your reputation is your best asset, so insure it. Certain risks to your reputation can’t be insured, but not so  if you experience a data breach. When data is compromised, you risk losing the trust of your customers and suppliers. Cyber Insurance helps pay for a public relations firm to help restore this trust and covers the loss of future sales resulting from customers switching to your competitors.


How to quickly and easily get a Cyber Risk quote

In the near past, getting a Cyber Risk quote was a real pain. The applications were long, complicated and needed the input of your IT/network vendor to be accurately completed. Now, major providers are able to provide a quote with your basic business information and revenue projections. And prices are falling dramatically. You will likely be pleasantly surprised with the affordability of your quote.

In order to get a quote, please complete our quote request form or call Sadler & Company at 800-622-7370 and ask for our commercial department.

Source: “Why Cyber?” evolvemga.com
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