The latest statistics show that 43% of cyber attacks target small businesses and 60% of those organizations attacked go out of business within 6 months of the attack. With the growing number of cyber attacks every day, the general thinking is not if you will will get breached, but when and how bad will it be when it happens, if it hasn’t happened already and you don’t know it yet. You can do many things to protect your business using a defense in depth security strategy, but no defense is 100% fool proof. As such, looking at cyber liability insurance for your business is a smart move for any business owner.
The cyber liability insurance market is still evolving and may always be as this arena is constantly changing. Different policies can cover different things so it is important to consult with an expert in providing this type of coverage so you can be sure to get what you need. Some policies will cover not only your costs but third party costs associated with a breach. Others will cover lost business revenue and associated soft costs. Depending upon your business model, different options may be appropriate. Obviously, the more coverage you get the higher the premium will be so be sure to find the right balance for your organization.
Many people believe that since they have standard business liability insurance they will be covered in the event of a cyber attack but that is not always the case. Some insurers offer an optional cyber coverage rider and some do not offer it at all. Again, the expert insurance consultant can help you figure out what you have and what you need.
The short answer to the question though is yes, every business should be looking at cyber liability insurance and working to protect their organization as well as they can from cyber attacks and the damage associated when it happens.
Michael Giuffrida from Southington CT has been operating businesses since 1997. He is an experienced entrepreneur in business management, profitable growth, business valuation, mergers and acquisitions, and information technology managed services.