Cyber security used to be nothing more than an anti-virus program on a computer. Today, it is far more and presents a much more significant risk to both individuals and business owners. Cyber crime insurance aims to hedge against these risks by providing companies with financial protection from negligent claims of identity theft or other high-level risks. It is one of the newest forms of insurance that even small business owners need to purchase.
Some estimates are very worrisome. IBM says that as many as 75 percent of all companies have experienced some level of data or cyber theft and 83 percent of consumer social security numbers have been hacked at one time or another. Most recently,
Cyber liability insurance provides financial protection for a business owner when a data breach or another type of cyber crime occurs and expenses individuals or other businesses to risks. It can provide coverage for:
- Legal defense in cases of cyber crime
- The cost of notifying customers about the incident
- Coverage for recovering any data compromised
- Costs associated with protecting affected customers, such as paying for identity protection or credit monitoring
- Repairing damaged computer systems
- Aiding with brand reputation loss
Even the largest companies with high-end security systems in place can fall victim to this type of threat. Recently, credit monitoring company Equifax suffered one of the largest data breaches in history when the personal information of 143 million American consumers was accessed. If it can happen to a large company like this which is putting millions into security, it can happen to any business.
The good news is cyber crime insurance is available, and it can provide significant financial protection for most business owners. The key here is to ensure you have coverage, you have the right type and amount of it, and that you’ve put in place measures to safeguard your customer and employee data from these types of risks. Work closely with our business insurance agents to improve the level of security present in your business. Call 714-258-2800 or 888-725-7776 and start your protecting your business against cyber crime.