Cyber Liability Insurance: Is your company at risk?

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Target, LinkedIn, eHarmony, Yahoo! – all companies that suffered huge losses following cyber-attacks. Cyber experts agree that it’s now no longer a question of “if a business suffers a data breach, but “when.” And because policy language increasingly excludes cyber loss from commercial general liability (CGL) coverage, your business faces a very real risk – one that could even be a death sentence.

 

Cyber breaches are rampant and costly!

  • 2 million cyber-attacks on businesses occur every week
  • 72% of all data breaches occur in small – to medium – size businesses
  • 100,000 customer records are affected in an average cyber attack
  • $300,000: average total cost of a data breach

Where your company is vulnerable?

  • Social media – One in 10 social network users have fallen victim to a scam or fake link on their social network platforms. Facebook alone accounts for more than 600,000 compromised users daily.
  • Mobile payment platforms – Nearly 3 in 5 compromised credit-card transactions took place using a mobile payment platform.
  • Ex-employees – 59% of former employees admit to stealing company data when leaving.

What cyber liability policies cover?

  • Liability for security or privacy breaches, including loss of confidential information via unauthorized access to computer systems.
  • Costs associated with a privacy breach, including consumer notification and costs of providing credit – monitoring services to affected customers.
  • Costs associated with restoring, updating, or replacing business assets stored electronically.
  • Business interruption and extra expense related to a security or privacy breach.
  • Liability associated with libel, slander, copyright, infringement or reputational damage.
  • Expenses related to cyber extortion or cyber terrorism.

Industries most at risk:

These business sectors experienced the highest incidence of cybercrime:

  • Manufacturing: 26.5%
  • Finance and insurance: 20.9%
  • Information and communication: 18.7%
  • Health and social services: 7.3%
  • Retail and wholesale: 6.6%

 

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