Data Breach Insurance - Small Business Protection From Growing Cyber Security Threats
You think that cyberattacks and data breaches are only a problem for the biggest companies? You are wrong.
Cyberattacks can be devastating for businesses that handle customer data and/or process payment transactions. A data breach can lead to significant costs for small businesses. The average cost of each compromised record is just over $200 per record. This means that your bottom line may be affected by legal defense costs and settlements.
Cyber Liability Insurance For Small Business
Cyber Liability small business insurance which covers a data breach incident is available in conjunction with a Business Owners policy (BOP). It provides comprehensive, but affordable coverage to reduce the damage to your business as well as your reputation.
Customers will be notified of a data breach
Services for monitoring credit cards
Retention of a public relations consultant to restore your reputation
Forensic and consulting fees to determine and fix the root cause of data breaches
If you are sued for unauthorized access or misuse of personal information, defense and settlement costs
Cyber insurance cannot prevent data breaches from occurring. Cyber insurance can't prevent data breaches from happening. But, it can help you prepare and respond to them.
It might seem that hackers and malicious attacks are responsible for most data breaches. However, more than half of data breaches can be attributed to system flaws or human error.
These are just a few examples of scenarios.
An employee accidentally sends a bunch of personnel files to an incorrect email address.
A credit card company contacts you to inform that your point-of-sale system has compromised credit cards used by your business.
You may lose your phone while on business travel. This could result in sensitive customer information being stored in your Inbox.
What does a (BOP) cover?
As Cyber Liability / Data Breach Insurance is part of a Business Owners Policy, it is important to know what other coverages you will receive with this necessary and important policy for your small business.
The business owner's insurance (BOP) combines two types coverages while protecting your small business from a wide range of claims. Its coverage components are:
General liability insurance
Commercial property Insurance often includes business income (BIEE)
In the event of someone bringing a claim against your business, the general liability section of a BOP protects your business. General liability insurance protects you from lawsuits that result from claims such as a customer falling on a wet floor or a defective product causing injury to another person's property. You can also be protected from libel and slander, as well as certain legal claims related advertising.
The property section of a BOP protects your business property, whether it is owned, leased, or rented. It includes your buildings, inventory, and equipment. It covers the cost of replacing or repairing damaged, stolen or destroyed property. It also covers income, which includes expenses such as rent, payroll, and other financial responsibilities when your property is being repaired/replaced after a fire or another covered loss.
A BOP provides specialized coverages that can tailor to your specific risks. It also offers many optional coverages that may provide additional protection. You can take this example:
Hired or Non-Owned Auto - protects your business when you lease, rent or borrow a vehicle for a temporary period or when employees use their personal vehicles to conduct company business.
Cyber Liability, including Data Breach -- Protects your business from cyber security risks such as data breaches.
Contractor's Equipment -- Helps pay for the repair or replacement of equipment and tools if they are stolen, lost, or damaged.
What Business Types Benefit The Most From A BOP?
Most small businesses will benefit greatly by taking out a BOP, here are the top industries we typically write these policies for:
Commercial Real Estate
Contractors
Financial Services
Garages
Healthcare
Manufacturers
Personal Care Services
Pet Care Services
Printers and Publishers
Religious and Cultural Organizations
Restaurant and Food Service
Retail
Service Businesses
Technology Services
Wholesalers and Distributors
Customized Business Owners Policies From A Trusted Regional Source
Businesses in New England and New York should look for coverage through a partner who has the market access and experience to offer a customized program. Pearson Wallace Insurance Agency writes BOP policies in MA, NH, CT, VT and NY. We can help you navigate the insurance process to provide maximum protection for your small business! Request a call with a Pearson Wallace Insurance agent now to get your customized quote.