Why Cyber Liability Coverage Is Essential to Your Clients

The question for your clients is not “If” a data breach will happen, but “when?”  It’s just a matter of time.

According to a recent study by the U.S. Secret Service and Verizon Communications, Inc., over 72 percent of all data breaches occurred in small and medium-sized businesses. The average cost of a breach? Over five million dollars, according to most financial analysts. Bottom line is all companies are at risk.

How Do Data Breaches Occur?

Some data thefts occur from external hackers while others from malicious insiders.  A large amount occurs from simple carelessness like employees giving out passwords to someone representing themselves as the company’s IT Department.  Once a hacker gains access to a password, the system is wide open.

A hacking attack can cripple a large company and put a small company out of business!  Having cash on hand, from a good Cyber Liability policy, can help keep the lights on, pay for business interruption and even cover regulatory fines or penalties, if incurred.

Liability for loss of customer or employee data is not typically covered under a General Liability policy.  Even so, 65% of public companies forego cyber insurance even though they identify cyber risk as their #1 concern. Meanwhile, a quarter are expecting a cyber breach in the coming year.

What Can You Do?

Talk to your clients about:

1. Performing regular hardware, software and system-wide risk assessments
2. Create a written IT security policy.
3. Get appropriate Cyber Liability coverage

Next Steps…

Access E&S can assist you with finding the right Cyber liability coverage for your clients.  Contact Us Today!

DOWNLOAD: Cyber Liability / Data Breach & Privacy Application