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What You Need to Know About Cyber Liability Insurance

Every year, new high-profile data breaches and cybercrimes are occurring. No business or medical practice is too small or too large to be damaged permanently in the wake of fines, legal fees and reputational consequences. Over 55% of small businesses have experienced data breaches, and 53% of those have had multiple data breaches. Can you afford not to have a cyber liability policy?

The Cost of Cyber Crimes

The average cyber-attack costs a small business between $84,000 and $148,000. A whopping 60% of small businesses go out of business within 6 months of the cyber-attack. A great deal of information can be lost in an attack since businesses and medical practices store everything from mission-critical information to customer credit card numbers and passwords. In 2019, Cybersecurity Ventures predicts that ransomware damages will climb to $11.5 billion in 2019, and that ransomware attacks in healthcare organizations (currently the top target) will quadruple by 2020.

Flexible Policies to Meet Your Needs

Depending on your needs, your cyber liability policy can include coverage for:

  • Breach response expenses
  • Legal defense and liability
  • Identity recovery
  • Computer or cyber attacks
  • Network security liability
  • Data compromise liability
  • Electronic media liability

CG Insurance Group can work with you to determine the right level of coverage to prevent your business from becoming financially devastated in the aftermath of a cyber-attack or security breach.

Preventing a Cyber Security Issue Every Day

With or without purchasing cyber liability insurance, there are many steps you can take to prevent serious losses at your business. You should always:

  • Encrypt data
  • Patch system vulnerabilities as soon as you discover them
  • Cross-cut shred all sensitive documents, including anything with personal information on it (including check-in logs from the reception desk, receipts and anything else that could be used to gain protected information)
  • Educate your employees on how to identify potential scams, like email phishing and ransomware, and protect themselves
  • Use two-factor authentication for signing into all critical systems
  • Invest in physical security systems for your business, as some data theft does occur in person
  • Have a contingency plan in place in the event that a cyber-attack occurs

Cyber Liability Insurance from CG Insurance Group

If you are concerned about your current cyber liability policy and protecting the finances and reputation of your business or practice, it’s important to work with an insurance broker who knows how to assess and meet your needs. If you aren’t sure what your insurance needs are, don’t hesitate to get in touch. To learn more about insurance solutions from CG Insurance Group, contact us today at (410) 504-6727.