Are you debating whether or not to invest in cyber liability insurance? Think you know all there is to know? Here are five misconceptions many business owners have about cyber liability and the facts that may accelerate your decision-making process.
Cyber Liability is Expensive
Here’s the truth: The cost of remedying a cyber breach for a small to mid-sized business can range anywhere from six digits to several million dollars or more. In contrast, the average premium for Cyber Liability for a small to mid-sized business may range from $1,000 to $7,000 (depending upon industry, types of exposure, etc.). Investing in a Cyber Liability policy may be the most affordable way to protect your company from financial ruin.
My Business Could Withstand a Cyber Attack
Not necessarily. 60% of companies that experience a data loss go out of business within six months. Cyber criminals are becoming more sophisticated every day leaving tech professionals playing catch up and leaving companies exposed.
My Crime Policy Covers Cyber Liability
Although cyber crimes often result in theft or property loss, many traditional insurance treat them differently than non-cyber crimes, creating a coverage gap. As cyber threats evolve, insurers are responding with new coverages. If you don’t have cyber-specific coverage, you could have uninsured risks.
Our IT Team Has Cyber Security Under Control
While you can take precautions to protect sensitive information from a data loss, you can never fully protect yourself, your customers, your vendors/suppliers, or your company from a cyber breach. Cyber insurance is a vital component of your risk management strategy, reimbursing you for costs associated with remedying a breach.
Our Employees Can Spot a Cyber Breach
Employees are your greatest asset; but, when it comes to thwarting a cyber attack, they may very well be your weakest link. Employees fall prey to cyber leaks or ransomware tactics attacks by clicking on malicious links or failing to recognize a spoofed email. As the cyber landscape continues to change rapidly, it’s essential to continually educate employees about existing and emerging threats.
Made Up Your Mind?
Contact a New Agency Partners insurance advisor to determine the best Cyber Liability plan for your business.
All insurance policies are different. Be sure to review your insurance policy for specific information about coverages available to you. Nothing in this post is meant to suggest a guarantee of coverage.