Does a Small or Medium Sized Business Really Need Cyber Insurance?

cyber-security-insurance

As part of doing business, do you record and store birth dates, Social Security numbers, health information or other sensitive data for customers and/or employees? If so, you must look into an all new breed of policy called cyber security insurance.

McLean Insurance offers this coverage through Chubb, whose underwriter Clay Stabert says the need for this coverage can’t be overstated.  He warns that many small and mid-sized businesses don’t think they’re at risk for having sensitive data stolen or secure records accessed by unauthorized personnel.  “But the fact is,” Clay says, “that smaller businesses often lack sophisticated safeguards or full-time, dedicated IT personnel. This makes them prime targets for lawsuits and for hackers who can get in, grab data, and move on quickly.” Cyber Crime Business Victims

Industry research shows that small and medium sized businesses are actually prime targets of complex and evolving cyber threats. Almost three-quarters (72%) of data breaches investigated by Verizon Communications’ forensic analysis unit in its latest Data Breach Investigations Report were focused on companies with less than 100 employees.

Furthermore, targeted attacks destined for small business (1 to 250 employees) accounted for 31% of all attacks last year, compared with 18% in 2011, an increase of 13 percentage points, according to Symantec’s Internet Security Threat Report 2013 (ISTR).

According to Clay, cyber security insurance is the new EPLI (employment practices liability insurance). “Just as EPLI has become a must for protecting against lawsuits over hiring, firing and such, cyber security insurance is becoming a must in a world where losing control over sensitive information can expose business owners to staggering liability.”  As an example, Clay points out that it can cost $30 to $50 per individual record to meet notification and legal requirements if data is compromised.  “Compare that to the premium for insurance that covers those costs for you and you can come out way ahead,” says Clay.

Here at McLean Insurance, we agree and think every business should see if cyber security insurance belongs as part of their risk management and asset protection plan.  We’d be happy to help you take a look.  To learn more, please visit http://www.mcleaninsurance.com/services/corporate-insurance/cyber-security-insurance or give us a call at 703-637-4331. Also, you can always request more information by filling the form below.

 

Request More Info On Cyber Insurance Coverage

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Posted in Business Asset Protection, Uncategorized

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