Technology is an integral part of daily operations for many businesses, regardless of size or industry. Although technological solutions and electronic devices can make many tasks more efficient or convenient, your business must also understand the risks and exposures created or exacerbated by their use.
Given the threat that cyber criminals pose to businesses across all sectors in today’s world, your company should strongly consider working with the agents at Bone Robertson & McBride to build and maintain an optimal cyber liability insurance policy. For nearly 50 years, our firm has provided ideal insurance solutions for businesses across much of the western United States, Florida, Louisiana and Texas.
Why Do I Need Cyber Liability Insurance?
Cyber attacks and data breaches have become one of the greatest threats to modern employers. IBM’s Data Breach Report 2022, which surveyed 550 organizations impacted by data breaches between March 2021 and March 2022, found the following:
- The average data breach cost among U.S. organizations was $9.44 million.
- Eighty-three percent of surveyed organizations reported experiencing more than one breach.
- Sixty percent of respondents said the incidents increased customer prices.
- Insurance protection reduced the average cost of a data breach by over $240,000.
What Does Cyber Liability Insurance Cover?
Cyber liability insurance casts a wide safety net across many losses and expenses that may result from a cyber incident. In most cases, businesses should build policies that include coverage for the following:
- Ransomware payments—If your business’s devices or networks are infected with ransomware, you may be unable to access critical systems until you pay the attackers. Furthermore, cybercriminals may further extort you to ensure that sensitive data is not released.
- Response costs—Following a cyber incident, your business may be required to implement various response measures, including investigating the breach, notifying affected parties and retaining consumer credit and fraud monitoring services.
- Restoring systems—Your insurance can help pay for expenses associated with repairing systems and recovering compromised data.
- Business interruption—A cyber incident may temporarily force your business to cease its normal operations. Fortunately, your coverage may be able to help pay for resulting expenses, including lost income, renting equipment, hiring additional staff and acquiring third-party services, such as a public relations firm.
- Legal costs—If your business is sued in response to a cyber incident or data breach, your insurance can provide financial assistance for various legal expenses, including your defense, settlements and court-ordered judgments.
How Much Does Cyber Liability Insurance Cost?
The cost of a sufficient cyber liability insurance policy may vary significantly. At Bone Robertson & McBride, our coverage experts will analyze your business to determine its risk levels and insurance needs. In most cases, this will include considering the following criteria:
- Your cybersecurity controls
- Your industry
- Workforce size
- Number of customers, clients or patients
- Amount and type of data stored
- Estimated annual revenue
- Prior claims history
- Coverage details (e.g., policy limits)
Get the Right Coverage
As the world becomes more digital and remote and hybrid work arrangements grow more common, good cybersecurity practices should be a top priority for all businesses. Phishing attacks, malware, ransomware and social engineering are all significant cyber threats that require only one employee to make a small error to inflict devastating damage. Without adequate cyber liability insurance, a single mistake or lapse in judgment could lead to significant financial losses, irreparable reputational damage and government noncompliance penalties.
At Bone Robertson & McBride, our agents have the expertise and experience to assess your cyber liability insurance needs and construct comprehensive coverage for an optimal price. Contact us or call 800-510-1095 to receive a quote or learn more.
The above commentary should be taken as suggestions only as related to Cyber Security. Please seek legal counsel and/or cyber security professionals for a more thorough procedure and/or implementation of such suggestions included herein.
We would be pleased to provide you with a free Insurance Quotation for Cyber Security. Please contact Don Bone at firstname.lastname@example.org or (925) 674-1000 Ext. 103.