We've partnered with The Armstrong Company to feature a blog series on cyber liability and how it can affect you. Keep reading for some of the most common misconceptions about cyber liability, according to the experts!
Cyber liability coverage (for data breaches) has evolved from just insurance for information technology companies to coverage that nearly every kind of business should have - if they don't already. From retailers, banks, contractors, distributors, restaurants and medical offices, many businesses are unaware of the severe data breach exposure they face. In short, any business not making an effort to protect personal private information is seriously out of step with the emerging landscape of privacy laws.
Cyber Liability Misconceptions
- Only large retailers need the coverage.
- Traditional business liability insurance will cover cyber liability.
Wrong- traditional liability insurance does not cover your business for internet exposure of data breach.
- If we have a breach, it is not that big of an issue.
Wrong- a cyber breach can cost tens of thousands of dollars. The average notification cost per exposed record per person averages $250. All states now have laws that make it the responsibility of the company to provide indemnity recovery help. You may end up having to secure identity theft insurance for every breached record.
- My company does not store credit card information; therefore I don't have any risk.
Wrong- confidential information is defined as any kind of personal information including addresses, email, social security numbers, Federal ID numbers, family member information, bank information, and more.
- We don't use the internet for business and therefore don't have any exposure.
Wrong- according to the 2012 Data Breach Investigations Report by Verizon, 9% of data breaches were linked back to an employee of other internal source.
Wrong- businesses with fewer than 50 employees are the latest targets of cyber thieves. Often small businesses fail to have adequate protection making them an easy target. Companies with less than 75 employees endured 70% of the total attacks.
The Armstrong Company can provide your business the right combination of great pricing and full-coverage. Cyber insurance is available at very reasonable premiums these days. There are many insurance companies offering coverage to help protect your business from loss, but we trust the experts at Armstrong.