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Cyber Liability Insurance: Don’t Do Business Without It

Nearly every company uses, stores, or maintains electronic data on their customers and/or employees, exposing them to cyber attacks that can result in significant financial loss and reputational damage. Corporations, such as Marriott, Yahoo, Anthem, Chipotle and Target, among others, have all been victims of customer-related data breaches, thrusting them into the limelight and putting the focus on the extent and reach of cyber threats today. But cyber attacks aren’t only against large organizations like those that make headline news. According to a 2018 Verizon report, 58% of all cyber attacks target small to mid-size businesses (SMBs). While it is true that the ultimate reward might not be as high as it could be from a multinational organization, cybercriminals go after SMBs because they are easier to penetrate.

Cyber Stats Every Small to Mid-Size Business Should Know

Regardless of the size of your business, cyber criminals who want to access your network will take advantage of any vulnerable attack surface. A single unprotected or improperly secured edge device can be all they need to access an entire system with potential dire consequences.

  • In 2017, the average malware-related costs for small and medium-sized businesses included $1,027,053 due to damage or theft of IT assets, and $1,207,965 due to disruption to normal business operations.
  • Without the right resources in place, 60% of small companies are unable to sustain their business for more than six months following a cyber attack.
  • The number one tactic (88%) used to attack SMBs is through malicious emails with malware-laden attachments.
  • 60% of SMBs say attacks are becoming more severe and more sophisticated.

Protecting Against Cyber Risks

Businesses are getting more serious about upgrading their protection with advanced malware and other security protection and prevention in place. Additionally, Cyber Liability insurance over the last few years has become must-have coverage to help in mitigating losses and to address the expenses involved in the wake of a breach. Arroyo is experienced in putting together Cyber insurance plans tailored to our clients’ operations and the industries served. We can provide you with coverage that pays for the expenses involved with the following:

  • Theft and fraud, including Social Engineering and Cyber Crime
  • Notification costs
  • Credit/identity monitoring
  • Forensic investigation
  • Network/business interruption
  • Extortion
  • Data loss and restoration, including physical records (not just electronic)
  • Privacy liability
  • Crisis management
  • Penalties & fines

Many of the insurers with which we work also offer a breach coach to help businesses navigate and manage a data event, including securing a forensics company, ensuring compliance with notification requirements and managing crisis communications.