As companies continue to do more and more business online, strong consideration should be made toward investing in cyber insurance.
The convenience of the internet has made a huge impact on the ways in which companies conduct business. While the benefits of doing business on the web are substantial, the potential threats should be acknowledged.
What is cyber liability insurance?
Cyber liability insurance is one of the best defenses for businesses working online as data breaches and security threats are becoming more common.
At this moment, cyber liability insurance covers a vast spectrum of the internet. Coverage may include:
- Data breach or privacy crisis management (loss of confidential information)
- Media and multimedia liability
- Extortion liability
- Network security liability
Much of the coverage for first- and third-party participants overlaps into more than one of these categories. The best cyber liability coverage makes sure to include all of these potential security breaches.
Cyber security is important for most businesses
A recent article published by CNBC reports an influx in the purchase of cyber liability insurance. Start ups and more established companies as well as small, local businesses are all starting to invest in the coverage.
In a 2010 Symantec Information Protection Survey, respondents claimed an average loss of $188,242 to small and medium size businesses as a result of cyber attacks.
Financial institutions also saw a near 30% increase in 2013 in cyber insurance sales. Retail and wholesale businesses experienced a near 20% increase while all other industries saw upwards of a 40% rise in purchase.
Companies should think about how much of their business is done online to help weigh the options — if the majority is done online, purchasing coverage is probably in your best interest. Be sure to consider the size of your business and finances as coverage varies according to these factors.
Want to learn more? Contact Burkhart Insurance Agency for more information.