Cyber Liability for Mid-Sized Businesses: Exposing Common Myths

Financial Guaranty California

Year over year the increased risk of cybercrime goes up. Companies of all sizes are at risk for a data breach, but there are still common myths surrounding whether mid-sized businesses need the added coverage of cyber liability policy from Financial Guaranty California. Unfortunately, these myths are easily debunked.

We’ve Got Insurance

Because there has been such a rise of cybercrime, many insurance providers have created a specific cyber liability policy. As the companies create new specific liability policies for cybercrime, they have begun to remove these coverages from other standard business policies. Your company could be held liable for the cybercrime without that added coverage.

We’re Too Small

Regardless of the size of the business, cybercrime still happens resulting in data breaches, lost hours and increased liabilities. Small and mid-sized businesses may not have the financial capital to recover from a data breach on their own. The results of cybercrime can be devastating for a business.

We Don’t Have Much Exposure

With nearly half of cyber crimes happening in small to mid-sized businesses, your business has plenty of exposure. An agent can go over the specific risks facing your business and guide you to the right coverage and pricing options to protect your data.

Insuring your mid-sized business with Financial Guaranty California allows your company to take advantage of a comprehensive insurance policy package including cyber liability. Cybercrime is on the rise is your business ready.

 

What Is Cyber Risk Insurance in Indiana

cyber risk insurance in Indiana

Cyber risk insurance in Indiana protects businesses against cyber crimes such as data theft, including the loss of personal and financial information. An increase in electronic criminal activity over the last decade has necessitated the need for this insurance coverage. Hackers are not discriminatory, and even small businesses find themselves the victims of security breaches. This can destroy your operations potentially, as customer and employee data falls into the hands of the wrong people and trust in your business is lost. Nobody wants to continue to solicit a company where their personal and financial data is not protected properly.

Cyber risk insurance in Indiana covers your business against cyber theft by responding to the immediate need for a crisis management plan should a breach occur. If you failed to secure your data adequately, you may become liable for its loss. You will also incur costs to notify your customers of the risk to their personal information; you may even need to pay temporarily for credit monitoring services. You must, of course, update your data storage equipment to protect against future loss, and should anyone be slandered as a result of your data breach, you might be facing a lawsuit. These are just some of the things this additional business insurance covers, so protect yourself today.

What Could a Cyber Security Breach Cost Your Business?

Almost every week on the news there is another report about computer data being leaked. Globally, it’s estimated that cybercrimes cost businesses $365 – $375 billion annually, and some suspect that figure is low. If the data of your business is hacked, it will cost you around $150 per record breached to clean up the mess. How many customers do you have? Now multiply that by 150, and imagine having to pay that out if a hacker tries to get your customer’s credit card information. That is why you need an insurance policy for cyber liability in PA.

Not only does a cyberbreach cost your business money, unless you have insurance to cover your liability, but it costs employees. In the United States, cybercrime has resulted in a net loss of 200,000 jobs in 2014. You also lose your reputation. Customers won’t trust you with their credit card or healthcare data if you’ve been breached.

Reduce your cyber liability in PA by obtaining insurance to protect your assets. Work with your insurance company to implement policies and the structure that protects valuable data. Even small businesses are targeted because they are actually less likely to have the security in place like a bigger company. Your business has data that thieves want. You have locks on your doors and windows, but the real threat is your computers.