Cyber Liability Overview
Cyber security and information protection can be challenging for any company. Cybercrime is expensive, costing victimized organizations about $11.7 million each per year — up 62% from five years ago.
Staff members may unknowingly put the business at risk, as 89% of data loss incidents involve authorized users. Phishing and social engineering schemes are becoming more sophisticated to appear like legitimate messages and encourage recipients to click on a malicious link or download virus-laden files.
The harm done by a breach is extensive, putting untold dents in customer perceptions and loyalty. Many businesses don’t know how vulnerable they are until it is too late. You want cyber liability/data breach coverage in place because quick action is critical if your business is victimized by a cyber-attack.
Who needs this coverage?
Any business who does any of the following is at risk for a cyber-attack:
- Accepts credit cards.
- Handles or views private information of employees or customers electronically.
- Has Wi-Fi.
- Conducts a portion of their business online.
Cybercrime only impacts large financial services companies, right?
While stories about large financial services companies tend to be more newsworthy, small and mid-sized businesses are hit by 62% of all cyber-attacks, and the statistics don't stop there:
- 1 in 5 small businesses become victims of cyber-attacks.
- 60% of small businesses close within 6 months of being victimized by a cybercrime.