Why You Need Cyber Liability Coverage

Cyberlaw background concept

Computers are meant to make life easier, especially as a business owner. Unfortunately, they also open the door to many risks, including cyber breaches and cyber-attacks. Investing in the right cyber liability insurance policy is a good means to ensure that you and your business are protected from the expense of recovering from a data breach or cyber-attack.

There are many reasons why your business needs a cyber-liability insurance policy, including:

  • Cyber-attacks are becoming more common. In the last year alone, cyber-attacks and data breaches have increased by 62 percent.
  • The size of your business does not matter. 40 percent of cyber-attacks have occurred in businesses that have 1000 or fewer employees, while 31 percent of all breaches have occurred in businesses that have less than 100 employees.
  • All industries are at risk. Cyber-attacks and data breaches can occur in any industry, from professional offices to manufacturing and service businesses.  If you keep personal data such as dates of birth, social security numbers, bank account information, or credit card data, you are at risk.  Even restaurants that process credit or debit card transactions are exposed to cyber liability risks.
  • The cost is rising. In the last year, the aggregate cost of data breaches has risen to $5.4 million. This includes costs related to the breach, revenue loss, business disruption, legal fees, equipment damages, forensic analysis, public relations, and the cost to notify all clients that their personal information may be compromised.
  • The cost associated with a data breach is on average $188 per compromised record. If you do not have cyber liability insurance, you will be left covering these costs out of your assets.  Invest in a cyber liability policy, and protect your business.

Contact Abbate Insurance Associates in New Haven, Connecticut today to review you cyber liability risk and review coverage options for this important business consideration.  As a Trusted Choice Independent Insurance Agent ® we will work closely with you to place coverages best suited for your unique situation.

Source: Travelers Insurance

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