Guest blog by Robert Pizarro, Professional Lines Product Manager at AmTrust North America. Connect with him via email at Robert.Pizarro@amtrustgroup.com, or via phone at 216.901.8458.
Small businesses face abundant risk every day their doors are open. You protect against employee or customer injury with liability insurance, and you protect drivers and vehicles with commercial auto insurance. But when it comes to protecting financial data, customer information, and the overall cyber security of the company, does your small business purchase cyber liability insurance coverage?
If your answer is “no,” here’s the big reason why you should consider purchasing this important coverage.
The Rising Cost of a Data Breach
In June 2017, the Ponemon Institute and IBM Security released their annual Cost of Data Breach Study, which provides an overview of the costs of cyber breaches across the world. This year’s study included data from over 400 companies in more than 10 countries. Of those, the U.S., Canada, and the U.K. were included.
Here are a few staggering facts we learned from the study:
- The average cost of a single data breach in 2017 was $3.62 million
- 47% of companies found that criminal or malicious attack was the cause of the data breach
- Companies have a 27.7% chance of a repeat attack within the next 24 months of a data breach
SEE ALSO: A Cyber Liabilty Insurance Cheat Sheet
Protecting Your Business from Cyber Attack
In the past, getting covered with cyber liability insurance was an optional add-on that made business owners and IT managers feel more comfortable. These days, cyber insurance is a necessity for any company that stores employee and customer sensitive data. Between the negative customer image created by a breach, and the costs associated with repairing the damage, a cyber liability insurance policy is an affordable and necessary insurance policy for any business.
For some cyber security tips on how to protect your small business, view this cyber security infographic.
Get the peace of mind you need to conduct day-to-day business without fear of cyber attacks, contact Links Insurance for a free quote.
This material is for informational purposes only and is not legal or business advice. Neither AmTrust Financial Services, Inc. nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is appropriate or suitable for any specific business or legal purpose. Readers seeking resolution of specific questions should consult their business and/or legal advisors.