Cyber liability insurance is one of the fastest growing business insurance policies that NC small businesses are looking to protect themselves with. Because it is such a new policy type, there are several questions on what it is and what it covers. We will discuss exactly those things in this article so that you can make an educated decision if this policy is right for your North Carolina small business.
Everyone knows how much cyber is a growing concern, but it might surprise some businesses just how common it is. It is far from being a concern for only large corporations too. In fact 60% of cyber crimes are against small businesses. 60% of those businesses that are victims of these attacks go out of business within 6 months of the attack. The costs are staggering when they do occur and those without cyber insurance are left with 100% of those costs.
Are you exposed to the possibility of this happening to your business?
If your company has/does have any of the following, then the answer is a resounding yes.
- Company Website
- Social Media Accounts (Facebook, Twitter, Instagram, Linked In)
- Accept Credit Cards
- Uses Online Banking
- Store Customer Data (Name, Address, Date of Birth, License Numbers, Credit Card Info, Social Security Numbers)
If you realize that you could be at risk, but are still confused on what types of things could happen to you, then you are not alone. It can be very complicated. We will discuss and clear up some of those common claim types below and explain the ways that a cyber policy will help cover those things.
Social engineering is a predatory type of cyber crime where an employee is tricked into sending or uploading money to someone through false pretenses.
Cyber insurance will cover those lost funds from these types of schemes.
This is a virus sent as a link in an e-mail. Once an employee clicks the link, the virus immediately begins to to encrypt computer files. The imposter will then demand funds in order to recover the company’s files. Typically bit coins will be demanded.
The cyber liability policy will cover the cost of the ransom in order to have your files recovered.
This type of attack gains the most media attention. Large organizations like Sony, Target, and Equifax have recently been in the news for being hacked. These losses occur when a cyber criminal breaches a company network and gains access to customer data.
Cyber policies will typically cover the following:
1. Fines by regulatory commissions and other penalties
2. Legal fees toward lawsuits from customers
3. Security expert assessments
4. Public relations firm services
5. Customer notification costs for those effected by the breach
Covers defamation or slander by an employee about a customer on social medial accounts causing a lawsuit.
Cyber insurance will cover defense in a lawsuit against your company.
FUNDS TRANSFER FRAUD
Hackers gain access to your system and transfer company funds to their account.
Your cyber policy will cover any losses incurred, not covered by your bank for fraudulent transfers.
Your company site gets hacked making your system inoperable and not allowing customers access to their information.
Cyber insurance will cover lawsuits by customers for not being able to access their account.
One final myth we would like to dispel regarding cyber liability insurance, and that is that the premiums are too expensive for a small business. We write through some of the leading insurance companies in the industry, with the most competitive premiums. Premiums start as low as $800 per year depending on the business type, size, and exposure.
Please call us at 704-494-9495 with any questions, or if you would like a quote on this valuable insurance policy today.