Businesses were already becoming more and more digital, then the pandemic hit and that transition increased significantly. Even businesses that may not have considered online solutions before. With even more business happening online, there are new threats that business owners need to be prepared for – computer viruses, data breaches, malicious hacking, and other cyber-crimes. To help cover the cost related to these potential exposures, the insurance industry has policies tailored to cover the loss and damages.
What is Cyber Liability Insurance?
Cyber liability insurance is a newer coverage that has evolved from the digitization of business in the 21st century. Cyber liability insurance generally covers your business’ liabilities for a data breach or cyber crimes involving sensitive customer information such as Social Security numbers, credit card numbers, account numbers, driver’s license numbers, and health records. Coverage is available on a first- or third-party basis. First-party coverage helps cover your expenses when your network or website is hacked or sensitive data is stolen. Examples of covered expenses are setting up a call center for customers after a breach, providing credit card monitoring for affected customers, completing forensic investigation, and covering loses from business interruption. Third-party coverage protects your business in the event a customer, vendor, or partner sues your business for allowing the breach to happen.
Who Needs it?
The short answer – everyone. Any business that accepts credit cards as payments, stores any sensitive customer information (financial, health records, or personal), or conducts business online or in the cloud is susceptible to a data breach or cyber attack. According to Property Casualty 360 and Kaspersky Labs, 62% of all cyberattacks are perpetrated against small- and mid-sized businesses with an average breach cost to those businesses of $86,500.
How has COVID-19 Impacted Cyber Risk for Companies?
With the push for digital transformation and remote working capabilities, companies are at an even larger risk for cyber breach claims. Cyber criminals are also recognizing the opportunity to strike, utilizing new malware to attack systems across the entire business landscape. According to a recent Deloitte article, the average cost of a data breach resulting from remote working can be as much as $137,000. To combat the increased exposure to data breaches due remote working, Deloitte suggests implementing the following essential practices for employees:
- Antivirus protection
- Cybersecurity awareness training
- Phishing awareness training
- Home network security protection (ie. strong passwords)
- Use a VPN
- Identify weak spots
- Frequent reviews
- Renew business continuity and crisis plans
At Univest Insurance, our team of risk consultants have more than 100 years of combined experience in the property and casualty industry. We work closely with cutting-edge cyber liability insurance providers and our consultants can effectively customize a complete insurance portfolio that supports your risk management goals. To have a conversation about what cyber liability coverage may be appropriate for your business, contact us at 800-220-3077 or firstname.lastname@example.org.
Insurance products offered through Univest Insurance, Inc. are obligations of the issuing insurance companies, not obligations or deposits of or guaranteed by any bank and are not insured by the FDIC or any other agency of the United States.