Companies are frequently exposed to hacking incidents and data breaches. Organizations can pay huge fines and expensive legal settlements in cyber liability cases, not to mention the brand's reputation will suffer. Your small business isn’t spared in this as it could also face a cyber risk.
Cyber insurance covers a broad range of information, ranging from data breaches to content liability and network failures. Small businesses can bury their heads in the sand and assume that only large organizations should worry about this insurance. The truth is that numerous small businesses are handling sensitive data that could be exposed, making them liable to numerous legal claims. It takes a single breach. Whether it's sophisticated, hacking, or as simple as an employee losing a laptop, it can dearly cost your business.
Businesses that handle and process consumers' information such as credit cards are at risk. If this happens to you, a network failure or breach could end up costing your business huge sums of money. Most states in the US have enacted laws that make data breach notification mandatory. Notifications may be expensive to your business, especially when you want to communicate with many customers through the mail.
A data breach can occur when private information regarding your employees and customers is exposed. This makes them susceptible to damage. Electronic data liability insurance has become an easy and affordable way of mitigating risks. With the rising cases of data breaches, this type of insurance will soon grow popular with small and medium businesses.
Most people often confuse traditional liability coverage and cyber liability. Traditional insurance only covers tangible assets if the policy offers business property coverage. For instance, your traditional policy only covers against loss of property or documents due to negligence, omission or error. The traditional policy does not cover any client data that is stored in an electronic database.
Cyber liability insurance in Florida mainly covers network privacy. It protects your business if a member of the public or client has suffered damage or loss due to your inability to protect the data stored on your network. The issue arises from leaks and theft. Network security is also covered in this policy. The policy will cover your liability when there is a breach of data or when users cannot access their data on your network.
The latest addition to this type of insurance policy is electronic media coverage. This covers your liability in cases of libel, defamation, breach of confidentiality, copyright infringement or invasion of privacy and slander that may arise out of the publication of electronic data on the web. This also covers all types of social media.
Overall, the cyber liability insurance Florida coverage is essential to all businesses that use and keep electronic software and databases utilizing private data. The policies are also customizable and tailor-made to meet the needs of the particular business. Whether you operate a small bike shop or run an online shop, you will find suitable coverage that also matches your budget and needs.
Cyber liability insurance Florida is designed to protect organizations and businesses against attacks and other penalties and costs involved during the process. An example of these costs is the investigation and penalty costs, cost of rebuilding a reputation and risk management services.
Your business could potentially face severe penalties by law enforcement authorities if data related to credit information of your clients is lost to hackers. The agreement of merchant services dictates that a business ought to pay for all reassurance and investigative costs of credit cards and fraud carried out on a stolen credit card. These costs can be expensive even for a small business. Cyber liability insurance in Florida covers business owners against these costs and penalties.
A business’s reputation is the most valuable asset. A breach of an organization’s network could potentially harm its reputation, resulting in decreased sales. A cyber insurance policy covers the costs of hiring a public relations firm to restore and rebuild the firm’s image in clients' minds. It also compensates the company for any loss faced due to a cyber attack. Examples of damaging data breaches include eBay, Facebook, Sony, Target, Yahoo, Gmail, AOL and Adobe Systems. If these risks can happen to large organizations spending millions on data protection, be sure it can also happen to your small business.
Big organizations have a risk department that reduces the risks faced by the business. Small and mid-sized businesses do not have a risk management team. By acquiring this cyber liability insurance, your insurer will be able to assess your IT-related risks. The assessment report will also shed more light on how you can manage cyber risks without necessarily having a risk management department.
If you think that a cyber attack can temporarily halt your business in Florida, you should consider cyber liability insurance. However, the business interruption only covers the business when there is damage to physical property. The business interruption may not cover you in case there is damage to your network system.
IT businesses are exposed to uncommon risks since they do a lot of IT contracting or freelancing work. Even though the business may be extra cautious, a small mistake or oversight could lead to expensive lawsuits. Examples of types of companies that need cyber liability insurance include business intelligence, computer programming, hosting, business consulting, IT project management, IT staffing, data analysts, website development, network security consultants and frontend developers.
Although cyber criminals pose a real threat, in most cases, the data breaches can be caused by something more mundane, such as a misplaced thumb drive, lost smartphone or stolen laptop. The following are common incidents that may result in data breaches or cyber claims:
A man looking for food in a recycle bin came across records containing medical histories and social security numbers. The data was obtained from a medical office, which also included the drugs they were taking. This case involved a breach of HIPPA, and the government fined the medical office.
A rogue employee can cause a cyber-liability claim. When employees learn that their contract may be terminated, they may respond by stealing addresses, names, social security numbers and other vital information from client's files. They may later use the information to get credit cards fraudulently.
Stolen laptops from employees can be used to access client’s data. The retailer is required to notify the affected individuals. The affected individuals can also file suit against a company for identity theft. The use of a spyware virus has become common. An individual may end up accessing the client's information and other confidential data while spying. This may end up costing the company quite a bit.
A small business can also get hacked, and this may result in the loss of confidential data. Hackers can later create false identities using the information. The business may incur credit monitoring costs, legal expenses, and other damages.
You might be wondering how much cyber liability insurance do I need. According to recent reports, the average cost of cyber insurance in the United States is $1,485 per month. IBM Company is reported to have spent more than $4 million in response to data breaches. For small and midsize, the cost of recovering from data breaches is about $86,000. Cyber liability insurance costs differ from state to state. For instance, the average cyber insurance cost in Michigan is $1,339 while a similar Florida coverage is $1,529.
Other than location, other factors influence cyber insurance premiums. The insurance companies also consider the nature of your business, the customer records you keep, the sensitivity of your customer's data, the security defenses you have undertaken and whether your company records banking and credit card information. You may pay higher premiums if your organization has any history of a cyber attack.
The level of coverage that you choose also affects your insurance coverage. You may pay a higher premium if you have high insurance coverage limits. You must choose the appropriate coverage for your business. The level of premium should also be affordable to your company. However, the liability level should be high enough to help your company avert financial disaster if there is a data breach.
Cyber liability threats are more common, and the risks are everywhere. Although you can think of it as a simple thing, your employee or a third party can put your business at risk. You should be aware of how to avoid these breaches.
It would be best if you considered cyber liability coverage in Florida for your security. CoverWallet is a one-stop-shop for all your cyber insurance covers. Contact us today for affordable insurance coverage.