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 etc. (all victims of Data Breach), then they are probably 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: firstname.lastname@example.org
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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