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What You Need to Know About Cyber Risk and Cyber Liability Insurance

Cyber risk is a real threat to small businesses, even if you don’t have a large web presence. Even if you only conduct a small portion of your business online, engage in social media, or have a website, a data breach of having an account hacked is a real possibility. You need to protect yourself from this.

How Much of a Threat Is It?

According to Cyber Risk Solutions:
·         From 2005 until March, 2014: There have been a total of 4,366 reported data breaches, involving 624,493,173 compromised records!
·         The average cost of a data breach in 2013 in the United States was $188 per breached record.

Statista found:
·         The average cost of cyber crime amounted to 12.69 million U.S. dollars in 2014
·         In 2014, 54 percent of global companies were insured against loss of income due to data breach, while more than half of the companies without cyber liability insurance considered purchasing it
·         Cyber crime has a negative impact on employee morale, business reputation and relations with clients

Data Breaches and Cyber Risk Are Real Threats

Businesses in Toronto can no longer have an “it won’t happen to me” attitude when it comes to the potential of a data breach. It’s not only hackers and computer viruses that could be the cause of the breach – it could also be disgruntled or careless employees or competitors who pose a threat. “The top causes of data breaches were malicious or criminal attacks (37%), human error (35%), and system glitches (29%),” says Cyber Risk Solutions. What is even more alarming is that, when investigated, most breaches require no specific skills and systems were fairly simple to penetrate.

“Data breaches are now a fact of life together with taxes and death, but how can businesses better manage the risks related to a data breach and reduce the significant cost that can result from them? One of the options is to buy insurance,” says Sarb Sembhi on Computer Weekly.

About Cyber Liability Insurance

Cyber liability insurance is recommended for companies of all sizes. It provides companies with a broad range of coverage and protection against online threats, risks, and liabilities to their business. A cyber liability insurance policy typically covers you for:

·         Data breach and expenses related to the management of the breach such as remediation, investigation of the cause, legal costs, and more
·         Extortion and losses as a result of the threat and fees to deal with the issue
·         Network security and damages as a result of downtime, loss of access, and data theft
·         Media liability and damages as a result of defacement of websites, defamation, and intellectual property infringement

"No two businesses are the same when it comes to cyber risks, therefore, it is key to understand the cyber risks your business faces and to ensure your cyber policy is tailored to mirror those risks," says Erica Constance, Divisional Director, FINEX Global.

Working with an experienced insurance broker in Toronto who understands your business needs is essential to finding the right cyber liability insurance policy for your company. Get a FREE business insurance quote today!
Posted: 2/26/2016 12:49:28 PM by Marianne Cipollone | with 0 comments

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