If there’s one group that most benefitted from the COVID-19 pandemic, it’s cybercriminals. Cybercrime has shot up by almost 300% since the start of the pandemic — and it’s still on the rise:
- Over 40% of cyberattacks target small businesses.
- Over 60% of small businesses have experienced a cyberattack in the past 12 months.
- Over 45% of small businesses say that their processes are ineffective at mitigating attacks.
To defend your company against malicious attacks, we recommend a multi-prong approach. In addition to reducing your risk with a comprehensive cybersecurity plan, consider purchasing Cyber Liability Insurance (CLI), which covers the financial loss that results from cyberattacks such as data breaches.
Why Invest in Cyber Liability Insurance?
Having cyber liability insurance could be the difference between your business sinking or staying afloat after a security incident. In the event of a severe data breach, good cyber liability insurance could cover:
- Cost of downtime
- Cost of investigation
- Cost of recovering data
- Cost of legal procedures
- Cost of notifying stakeholders about the incident
- Cost of restoring the personal identities of those affected
Any business with cyber exposure can benefit from cyber liability coverage. But if your business handles or stores sensitive information online, such as electronic protected health information or personally identifiable information, cyber liability insurance should be your top priority.
Finding the Right Coverage
While most insurance providers offer general liability coverage, they don’t always offer comprehensive cyber liability coverage. When doing your research, look for insurance providers rated ‘A’ or higher by the most reputable insurance rating agency. A few insurance carriers we recommend:
- Chubb
- AIG
- Travelers
- AXA XL
- AmTrust Financial
- Co-Operators
You’ll also want to ensure your plan includes the following:
- First-party coverage:
> Network security and privacy liability: Covers breach response costs like forensic investigations, public relations, credit monitoring, legal fees and fines/penalties
> Business interruption losses and extra expenses: Covers lost revenue and added costs to continue business
> Digital data recovery and cyber extortion expenses: Covers losses such as ransom paid due to ransomware - Third-party coverage:
> Cyber liability: Covers claims of lawsuit expenses resulting from breaches in client systems or networks
> Media liability: Covers claims of libel, copyright/trademark infringement, etc., resulting from media use - Cybercrime coverage: Covers losses from digital theft of money or securities and social engineering fraud
Ready to get started? From building a cybersecurity plan to helping you identify the cyber liability coverage that best suits your company’s unique needs, our security experts are here to help. Contact us to learn how to keep your business safe from cybercrime.
