In an era of daily data breaches, every business with a computer is at risk. This is why Data Breach/Cyber Liability Insurance is vital - especially for small Business Owners!
Many Business Owners believe their firewalls, anti-virus software, etc. protect them from cyber criminals. Unless they have protection superior to that of Target, Schnucks, Anthem, Home Depot, JP Morgan Chase, Dairy Queen (should I continue - all victims of Data Breach), then they are wrong!
Small businesses do not have the resources to maintain state-of the-art security. They may not have much data but they are an easy target, and a great place for novice Cyber Criminals to "cut their teeth" before moving on to bigger scores.
In addition to theft by Cyber Criminals, a good Data Breach Policy will also cover:
- Human Error: loss of computer, cell phones etc. disposing of sensitive data in dumpster (exposure to dumpster divers)
- Acts of Rogue Employees – claim examples
-Thousands of records stolen when it was determined that a former employee stole data on co-workers and clients
-Employee installs Credit Card skimming device, stealing hundreds of records
The Average cost per lost record is $124* (which includes notification cost and the lost business costs associated with the breach). Now multiply that by each affected (or potentially affected) individual and the cost for a small business could be crippling! Additionally:
- The forensic cost to determine how the breach occurred - Hiring of forensic computer expert to determine the cause
- Cost to provide credit monitoring (to affected parties)
- Cost to handle the breach from a PR stand point
- And much more!
With all these associated costs, Data Breach/Cyber Liability coverage could save a Small Business!
For most businesses, we can obtain a quotation or indication of premium for you with a fairly limited amount of information. If you are interested give us a call (636-519-0059) or send me an email: email@example.com
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*Information provided by the Ponemon Institute - considered the pre-eminent research center dedicated to privacy, data protection and information security policy