According to the Ponemon Institute, the average organizational cost for a data breach in the United States in 2014 was $5.85 million. The frequency and cost of data breaches is growing at alarming rates, however cyber insurance premiums make up only 1/600 of the world’s total non-life insurance premiums. In light of the mass increase in occurrence, protecting your company assets is becoming more and more important.
The correct cyber liability insurance policy will provide you with benefits protecting you from a variety of risks including staff negligence, loss of laptops or mobile devices, employee sabotage, third-party billing agencies, and hackers. You may be required to add additional security measures to your processes; however it will be well worth your time.
You need cyber liability insurance if you:
- Collect credit card information at a point of sale
- Run a website that processes credit cards
- Store private customer information in your computer such as social security numbers, addresses, phone numbers, email addresses, etc.
- Use the Cloud or other third-part service providers for hosting applications or data
You may already have a comprehensive general liability (CGL) insurance policy for your business and assume you are covered. However, unless you have a specific cyber breach endorsement, your company is at risk. Without the proper insurance, you will pay out-of-pocket for:
- Legal support
- IT security
- IT repair/restoration
- Customer notification
- Credit monitoring
- Public Relations
- Loss of customers, clients, and revenue
To help determine if your insurance policies include data breach coverage, schedule an insurance review with your NEC insurance professional today at 636.271.2481, or contact Joe Bosse, President for more information.
NEC is one of the largest independent insurance brokers in Missouri offering business insurance, personal insurance, risk prevention, and financial services. Contact us today for more information at 636.271.2481 or visit NECins.com.