Home Depot, Target, Apple, Ebay, Neiman Marcus, Dairy Queen, UPS, and Google. What do these companies have in common besides being some of the most recognizable names in corporate America? The answer is that each of them has had a very high profile breach of security and client data that has cost them a ton of money to fix.
Your customers’ personal information has a price on it and the lengths that hackers will go to obtain it and sell it on the black market are limitless. It looks like these attacks are here to stay and large businesses are not the only ones who have an exposure to the growing cyber threat.
As a small business owner you collect information on your customers at every point of contact. You have information that ranges from basic contact items all the way up to social security numbers and detailed financial records. What would happen if your clients’ information was stolen? What would your customers think about your business? Are sales going to be effected while you pick up the pieces from the breach? What if I get sued? Where is the money going to come from to pay for all of this?
You might think your General Liability insurance should come into play if something like this were to happen; however, this is not the case (this type of loss is typically excluded). You need a Cyber Liability policy to answer all of the questions, or very deep pockets.
Do you have your calculator out?? On average each client record that is stolen can cost between $93-$300+ depending on what industry you are in.
Things you need to know:
- It’s inexpensive. Premiums can start as low as $1000
- Can pay for business interruption costs during the breach
- Pays for costs associated with notifying all of your customers
- A good insurance company can help identify a problem before it happens
- General Liability won’t cut it
- Even if your data is stored in the cloud you are still responsible.
If you think your business is at risk the best thing to do is contact an experienced agent today so they can you decide on a cyber liability program that fits your needs.
-Marc DeLeonibus, CLCS – Commercial Lines Agent