Does a substantial portion of your business operate utilizing some form of technology? Do you store customer and business information on your computers? How about your technicians or employees? Do they use their phones to help communicate important details about work? Chances are, the answer to the majority of these questions is a resounding “yes.” That shouldn’t be too much of a surprise, especially considering how quickly new technologies are coming out which are disrupting the status quo and making things easier for businesses. Every one of us has been there at some point, whether it’s storing purchase orders in a database or utilizing software-as-a-service (SAAS) solutions to solve problems at work.
Technology has made life easier in innumerable ways. Unfortunately, nothing easy comes without a price. When it comes to technology, that price is a dramatically increased liability pool. If you follow the news, it would be hard to miss some of the consequences of cyber-attacks and cyber liabilities in general. It seems like every day a company faces a huge breach, whether it’s Target in 2013 (which affected 41 million people and ended up costing the company $18.5 million) or even Equifax in 2017. According to a 2017 study sponsored by IBM and conducted through the Ponemon Institute, the average total cost of a data breach in 2017 was $3.62 million. That is a number which simply cannot be ignored.
There is a light at the end of the tunnel, however. Cyber insurance coverage is specifically designed to deal with data breaches and cyber crimes from both a regulatory and a civil liability standpoint. Many business owners believe general liability insurance can cover some of the damage stemming from cyber incidents. Unfortunately, that isn’t the case. Cyber insurance will mitigate liability which involves sensitive customer information and help deal with the consequences of it.
Here are a few examples of what cyber policies generally cover:
- Legal fees and expenses from civil or governmental entities
- Notification of customers (many regulations require the notification of customers in the event of a data breach which involves personal information)
- Repair/replacement of damaged equipment and systems
- Data recovery from compromised units
- Restoration of customer identities
- Public relations (data breaches are often accompanied by a decreased brand opinion)
- Business operations (to keep your business running while things are being fixed)
Do you think your business is adequately protected against cyber liabilities? Even if you think it is, we recommend a thorough review to make sure. Cyber-attacks are becoming more and more prevalent, increasing in frequency right along with the technology that makes them possible. Do yourself and your business a favor and make sure you are covered. It’s important to understand that insurance is just one piece of a larger puzzle. Contact McFarlan Rowlands for your free cyber review today and find out what steps you can take to protect yourself moving forward.