From national health systems to credit card companies to email providers, the size and scope of cyber attacks in recent years has grown exponentially. Along the way, millions of email logins have been compromised, companies' trade secrets have been exposed, and countless consumers' financial data has been made insecure. In other words, the threat from cyber piracy is very real, and it's one that businesses of all sizes need to take seriously. Hackers' tactics are constantly evolving, and even the most secure data protection measures are no guarantee against a breach. That's where cyber liability insurance comes in.
Understanding the Cyber Threat
Cyber attacks can take on many different forms, from email phishing scams to targeted assaults on a company's servers. In some cases, companies are specifically targeted, and sensitive information may be exposed about their own financial or trade secrets or about their customers. In many cases, such as the Black Friday credit card attack on Target in 2013, cyber criminals will attempt to steal secured data like credit card details, social security numbers, addresses, cell phone numbers, or drivers' license numbers that companies intend to keep securely on file for their customers' convenience. The WannaCry ransomware hack of 2017, on the other hand, is an example of a worldwide malware attack, which can indiscriminately cripple the digital infrastructure of not just one, but hundreds and even thousands of organizations.
The Cost for Small Businesses
Businesses should invest in security measures to keep their own and their clients' data safe. However, no system of protection against the ever-evolving nature of digital attacks can guarantee a 100-percent success rate. Breaches can happen at any time, and when they do, they could pose an existential threat to your business's very existence. Losing sensitive data and detailed business plans, restoring downed systems, and beefing up security after an attack is costly enough. If your customers' data has been exposed, then your business could quickly find itself defending against a number of claims, as well. Depending on the scope of the attack, the legal costs alone can prove astronomical, not to mention the damage any cyber breach will do to your company's reputation.
What Does Cyber Liability Insurance Cover?
Cyber liability insurance will not prevent an attack from happening, but it can cover some of the costs that arise after an attack occurs. Cyber liability coverage for small businesses will vary based on your unique needs, but at a minimum, it can help ensure that your company is in compliance with state regulations. State regulations generally require companies to notify consumers of a data breach involving personally identifiable information. Basic policies also often cover indemnification for legal fees and costs for recovering data and restoring damaged systems, and they can additionally offer continual monitoring of impacted data for a specific period of time. Cyber liability policies through AmVenture also provide coverage for Website Media Content Liability, Regulatory Defense and Penalties, and PCI Fines, Expenses and Costs.
How do I Get Cyber Liability Coverage?
The cost and scope of your cyber liability protection will depend on your company's risk profile and size. Request you free quote from AmVenture today so we can help you assess what sort of risks your company faces and the extent of coverage that is advisable to help protect your bottom line. Because cyber attacks are constantly evolving, you want a policy that is both flexible and responsive to the changing threats. With years of experience offering bespoke insurance solutions to small businesses, AmVenture is uniquely positioned to help you deal effectively with the threat from cyber piracy.