There are two types of businesses in the world: those that experience a cyber security breach and know it, and those that experience a cyber security breach and do not. Traditional liability products do not address the exposures involved with running business operations online, leaving your business exposed to the aftermath of a breach.
Here are five reasons why your business should consider a cyber security liability insurance policy:
- Data breaches and cyber attacks are becoming more common and have increased 42 percent in the last year alone*.
- 40 percent of all breaches have occurred in organizations of 1,000 or fewer employees and 31 percent in organizations of fewer than 100 employees**.
- All industries are vulnerable to a data breach or cyber attack, including education, financial services, nonprofits, professional services, manufacturing, hospitality, and retail sectors.
- The average cost of a data breach has risen to $5.4 million and includes costs related to business disruption, revenue loss, equipment damages, legal fees, public relations expenses and forensic analysis, as well as notification costs that are legally mandated in 47 states***.
- When your business experiences a data breach, the costs associated with the breach average $188 per compromised record***. Unless you secure a dedicated cyber policy, your business is not likely to have adequate insurance coverage.
For more information on cyber security liability, contact McGrath Insurance Group at 800-342-3859 or visit our website at www.mcgrathinsurance.com.
*This article is written for informational purposes only and should not be construed as providing legal advice.
* Symantec 2013 Internet Security Threat Report
** Verizon 2013 Data Breach Investigations Report
*** Ponemon 2013 Cost of Data Breach Study: Global Analysis