Many small and medium-sized businesses (SMBs) handle sensitive consumer and client information online; however, only 35% of companies choose to invest in cyber liability insurance. The threat of exposure of client information is very real, as evidenced by the recent cyber attacks on companies like Yahoo!, Target, Dropbox, and more. These large-scale attacks may lure CEOs of smaller ventures into thinking that hackers are focused solely on major corporations. In reality, according to an article on the Wall Street Journal website, “about 72% of the 855 data breaches world-wide analyzed last year by Verizon Communications Inc.’s forensic analysis unit were at companies with 100 or fewer employees.”
Cyber liability insurance does not only cover privacy breaches. Simply having an online presence opens your business to many potential cyber liability claims, including infringements on copyrights or trademarks, breaches in confidentiality, cyber terrorism or extortion, and much more. Typically, general liability insurance policies do not cover an adequate number of these potential claims. “Many business owners only learn the extent of their coverage after an attack,” said Chris Condon, CEO of United Insurance. “Make sure you understand the policies you have in place and are taking the right steps to secure your online presence in order to avoid the legal and financial repercussions that come with an online security breach.”
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