A data breach can have far-reaching consequences, causing financial losses and affecting an organization’s operations and compliance in the short term. And a major breach in the headlines can potentially damage reputation for years to come, leading to lost business and a competitive disadvantage.
Could a data breach happen to your Company?
If you’re in the business of holding personally identifiable information such as names, Social Security numbers, birth dates, addresses, driver’s license numbers, and credit card numbers, you’re at risk. In fact, as a smaller business, you’re at even greater risk from cyber attacks. According to data sources, 55% of small businesses have suffered from a data breach. In fact, 53% of all small business have dealt with multiple violations.
The Cost of a Data Breach
According to an IBM study, the average cost of a data breach is $3.86 million, so it’s no wonder Cyber insurance has become one of the most important types of insurance any business can purchase.
Can your company handle the costs of a clean-up if a data breach does occur?
Not only does it cost a lot of money to fix the issue, but there are also intangible costs. Cybercrime can hurt your reputation and put your employees at risk. But remember, no company, large or small, is immune to a cyber attack. In addition, the costs associated with a data breach include more than system upgrades and data recovery. Further, without adequate insurance coverage, your company would have to pay the extra damages from your own coffers.
What Does Cyber Liability Insurance Cover?
- Legal fees incurred
- Mailing or notifying clients of the issue
- Restoring the personal identities of those affected
- Credit monitoring for your customers after the incident
- Restoring and recreating data
- Public relations costs
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