If you had to guess what the fastest growing line of insurance for business is, what would you guess? I’d like to contend that it is cyber liability. In fact, the National Association of Insurance Commissioners (NAIC) cited cyber insurance as the fastest-growing line for 2017. The reason for this jump in cyber liability popularity is many-fold. The prevalence of smartphones, and the growing number of computer hackers put us all at risk both personally and through the businesses we interact with and own. Large and small businesses deal with cyber security breaches on a daily basis. Names like Target, Yahoo, and Equifax all come to mind when the term “data breach” is mentioned, however, it is happening in our small towns and locally owned businesses as well. Cyber is a scary and unfamiliar world for many!
What is the best thing to do when dealing with such uncertainty in the business world? Protect yourself and your business! Cyber liability offers many different types of coverage options, some for very small premium cost compared to the amount of coverage provided to a business.
Cyber liability can protect your business from ransomware attacks, phishing attacks, negative publicity, data breaches, lost or stolen mobile devices, copyright/trademark infringement, extortion, and much more depending on the coverage desired. Some carriers offer an additional cyber coverage add-on in their package policies, while others have specifically tailored and stand-alone cyber liability policies.
Many cyber liability policies offer much more than a specific dollar amount of protection. They can also offer tools for prevention against a cyber attack. Services such as consulting with cyber security professionals and ethical hackers, detecting malicious activity and monitoring security incidents prior to a loss, and PCI (Payment Card Industry) Compliance are just a few of the options that can protect a business in the cyber world.
No one wants to lose their business’ good reputation and the trust of their customers, or have damage done to their brand. Data breaches continue to increase in frequency and severity every year. Experts believe that it’s not a question of if your business will be impacted by a cyber event, but when. Whether malicious or accidental, a business’ critical and protected information has the potential to be exposed and corrupted quickly. Cyber liability can help your business reduce vulnerabilities, and protect against the multitudes of dangerous cyber attacks out there. It can also help put best practices in place for your business’s cyber security. If you have any questions regarding your business insurance or cyber liability, contact your agent today.