Cyber Liability Insurance
Data breaches can damage more than just your small-business computer system – it also can damage your reputation and put your customers and/or employees at risk. That's why cyber insurance can be a smart precaution for any size business.
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Cyber insurance generally covers your business' liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver's licenses, health records, or other sensitive information.
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Network Security
An employee inadvertently downloaded a destructive computer virus onto the company’s network, resulting in widespread data loss and transmission of the virus to a client’s computer network. The client sued the company, contending it should have prevented transmission of the virus. Damages of $750,000 were sought for the lost data and economic loss caused by the network security breach.
Ransomware
An employee opens a suspicious email and is told that the businesses point of sale system has been compromised. No longer can the employee open emails or access their computer. Now the only thing showing up is skull and cross bones upon the computer desktop screen. An alert displays the account will stay locked until 2 bitcoins have been wired to a random address. The cost to retain control of the computer, notify customers of the breach, and become compliant with the government again is $250,000
Lost Data
An employee’s company laptop was lost on an airplane. The laptop contained files of private financial information of the employer’s customers. The company had to pay for notification to its customers that its private financial information was no longer secure. The customers sued the company for damages resulting from its failure to protect their private financial information. The notification costs and settlement totaled $350,000.