Computers and the internet have revolutionized how we all do business. In many
That’s what the state of South Carolina
The scary thing is according to the Verizon 2011 Data Breach Investigations Report the largest percentage of breaches involved companies with 11 to 100 employees. Furthermore, most states require you to notify your clients of any possible breach. Just the notification and credit monitoring to all of your clients will cost an estimated $15 per record. According to 2010 Symantec data, the average cost to small and mid-size businesses due to cyber attacks was almost $190,000 and that almost 60% of small businesses will be out of business within 6 months of a cyber attack.
Most businesses would look to their commercial general liability policy to cover the loss.
The insurance industry’s response is called a cyber liability policy or data breach policy. A good cyber liability policy will address the costs associated with data breach including notification expense, restoration of records, theft, and electronic media protection and your client’s costs.
Cyber liability claims will soon compete with employment practices liability policies as the fastest growing area for business liability claims that were not covered by insurance.
There are a few factors you should be aware of:
First: There are only a few insurance companies that offer data breach insurance policies. As a result, you should contact an independent agent that has access to many different insurance companies instead of a direct writer that has access to just one company. There’s a high probability the direct writer would not even have
Secondly: Any business that accepts credit cards as a form of payment or keeps client sensitive information are potential targets. This means accountants, mercantile stores, doctors, lawyers, banks, schools, title companies are all prime targets. By the
Thirdly: The most common causes of
Outsourced technical support
Stolen paper records
There are a number of ways you can lose your client’s info. Be careful; be smart.
In conclusion, if you keep any sensitive information on your clients, we strongly recommend you at least acquire a quote for cyber liability. Generally, the data breach application is short and simple. If you need any assistance, contact us at your convenience.