Why Do You Need Cyber Liability Insurance?

Why Do You Need Cyber Liability Insurance?

 

More businesses are depending on online sources in order to store valuable customer and employee data, not to mention that many companies depend on the Internet to provide their products or services. Because of this, companies are much more vulnerable to potential cyber attacks.

Odds are you’ve heard of big name businesses such as Yahoo!, DropBox and more being hacked, leading to the private information of millions of user accounts being exposed. Unfortunately, cyber attacks such as these are not covered under typical business liability insurance policies, which is why you’ll want to purchase cyber liability insurance.

You may wonder whether cyber liability insurance is really necessary, especially if you run a smaller or medium sized business. The thing is, according to a study done by the U.S. Secret Service and Verizon Communications, an estimated 72 percent of all data breaches occurred in small to medium sized businesses. The average cost of these data breaches came to around 5 million dollars. This is incredibly costly for any business, not to mention a smaller or medium sized business.

The costs of purchasing cyber liability insurance depends on the industry you are in. Any business that does online transactions and that stores sensitive data, such as customer credit card information, will be considered a high risk for data breach, which means premiums will be higher. The same goes for medical-related institutions.

Be sure to contact us online at CCW Insurance for more information on cyber liability insurance policies today.