Although the more publicized cyber attacks on bigger companies, such as Target and eBay have been detrimental, many small business owners are unaware that they are just as susceptible to these attacks. In fact, just last year, one-third of all cyber attacks targeted companies with fewer than 250 employees!
Not only are small business owners less likely to have the proper tools to defend cyber attacks, they are also less likely to have the means to financially absorb the impact that a cyber attack ensues. Roughly 60 percent of small businesses hit by a cyber attack will close within six months, according to Claire Wilkinson, former vice president of global issues at the Insurance Information Institute and editor of Terms and Conditions, the institute’s blog.
Let’s look at an example of an accounting firm who had client records on their computers. A computer was hacked into and frozen by the hacker until the firm complied with the hacker’s request for money. The firm did not give the hacker any money and instead contacted a third-party to handle the damages. This resulted in sixty man hours of file re-creation. Cyber liability coverage can assist you when these situations arise.
What Can Cyber Insurance Do For You?
- Limiting risk in your web security profile through periodic reviews and other assistance.
- Reimbursing costs associated with an attack, such as hiring additional staff to recover from the attack, notifying all affected clients, providing credit monitoring for all affected clients, and other related expenses.
- Providing business interruption protection if cyber crime impacts your cash flow.
- Covering legal fees in the event of litigation or paying judgments if you lose a court case stemming from a cyber crime.
- Some policies offer safeguards against viruses and hacking, and others might even cover liability for problematic web content, such as a defamatory blog posts.
When looking for the right policy for your business it is important to first consider including coverage for the most common cyber risks, which are:
- Loss/theft of confidential information
- Corruption of data
- Loss of business income due to a cyber attack
Mitchell & Mitchell is determined to provide you with the best coverage, so give us a call at 1-888-512-8878 to assess the cyber liability risk within your business.