Does your business need cyber liability insurance? Big or small (40% of claims are less than 500 employees), the answer is yes! Did you realize that $195 average cost for each record lost? Even if a third party handles your transactions, the consumer is going to sue you! If using a third party, what if that vendor doesn’t have insurance or is hacked so much that they don’t have enough limits to cover all their clients?
Cyber liability is a method of hacking. Data Breach concerns what the hackers take once they get in.
Many insurance companies will cover Extortion—what if a hacker got into your data and encrypted it won’t release without a paid ransom? Also, credit monitoring for those hacked is covered. Rogue Employee—what if someone is writing down credit card numbers or taking photos of cards with a camera? This can all be covered.
Did you realize losing people emails is now a loss of data claim? Many hackers will use this info to phish people into giving their user id info. For example, a bank lost its email list and hackers sent out an email to the bank customers making it look like it was the bank sending the email. The consumer banked with them, so many were tricked into signing into a fake account. Even a church paid out a claim when its list of members emails was released.
Coverage on a Cyber Policy:
First Party Data Breach—affected parties
Third Party—you caused breach at another location
Cyber Crime—unauthorized transfer of funds
Most state require notifying consumers if your data is breached. State law says that in Michigan, if 20 of your customers are hacked, you are required to notify all customers.
At Ieuter Insurance Group, we can get an indication for coverage with two pieces of information: revenue and website. Some policies are as low as $300-$500 MP at $250K limit.