Top 5 Reasons to Consider Cyber Liability Insurance

As the frequency of data breaches and cyber crime increase, more and more business owners are seeking protection from these risks in the form of cyber liability insurance. Cyber insurance provides coverage for the response to and fallout from cyber crime and breaches. The need for cyber insurance has never been more acute, with numerous, massive incidents at companies like Target, Home Depot and eBay, as well as government agencies including the Office of Personnel Management.  These incidents, and many others like it, have prompted companies large and small to mitigate their exposure to cyber risk. Read on for some of the top reasons to consider protecting your business from cyber risk:

1. Data breaches and cyber attacks are becoming more common and have increased 42 percent in the last year alone.

2. 40 percent of all breaches have occurred in organizations of 1000 or fewer employee, sand 31 percent in organizations of fewer than 100 employees

3. All industries are vulnerable to a data breach or cyber attack, including education, financial services, nonprofits, professional services, manufacturing, hospitality and retail sectors.

4. The average cost of a data breach has risen to $5.4 million and includes costs related to business disruption, revenue loss, equipment damages, legal fees, public relations expenses and forensic analysis, as well as notification costs that are legally mandated in 46 states.

5. When your business experiences a data breach, the costs associated with that breach average $188 per compromised record. Unless you secure a dedicated cyber policy, your business is not likely to have adequate insurance coverage.​

Cyber liability insurance is a practical and affordable solution that can protect your business in the event of a data breach. Cyber coverage can be secured as a standalone policy, or in some cases, can be incorporated into your existing insurance package. Research Underwriters can provide an evaluation of your exposure to cyber risk, and can recommend coverage options to mitigate that risk.

Contact us today for more information. 

Content courtesy of Travelers Indemnity Company and the ISU Network