Cyber Insurance: I don’t know what it is, but am pretty sure I need it!
Here is a test to see if you need cyber insurance:
Does your business have client data and utilize the internet? If you answered yes, then you absolutely need cyber insurance. If you answered no….well, I would wonder how you are reading this right now, but maybe you don’t need this coverage.
If you read or watch the news, chances are you have heard about this before. Odds are a company that you do business with has been affected by a data breach. There have been some high profile companies that have had large scale data breaches (think banks, credit card companies, popular video gaming systems). Think about the costs involved to identify and repair the breach, notify customers and respond to regulatory action. Don’t forget the possible lawsuits from those affected.
I could list a bunch of reasons why you need cyber liability insurance, such as the average data breach costs several hundred dollars per compromised record to remedy, or that most states have enacted regulation regarding what is required of companies if they experience a data breach….but I won’t. I also won’t tell you that more than half of data breaches occurred at companies with less than 100 employees…..it is not just the large corporations that are affected by hackers.
I challenge you to do some research on your own, and decide for yourself if this coverage is something you need. Make sure you get a comprehensive cyber insurance policy that covers both 1st and 3rd party damages. Better safe than sorry, even in cyber space.