Listen to the nightly news, and you will hear about some of the larger data breaches and other cyber events that have occurred against some of America’s top companies. In some cases these companies are also some of the best protected businesses, yet despite such vigilance, they still became victims.
Unintentional employee negligence (UEN) continues to be the leading cause of why events happen in the first place, and while ongoing employee training is effective at mitigating these exposures, UEN simply cannot be avoided outright. The potential for human error exists in all facets of your business, and when it comes to cyber events and data breaches, a single human error can close a business for good.
A leading Cyber Insurance carrier recently released a statistic alert that 66% of all businesses who have a privacy breach go out of business within 6 months. This is a staggering number and a wake-up call for all of your small business customers. With this fact, the now daily attacks happening nationwide, and the increasingly repeating government warnings about the very real, urgent and serious nature of this threat, it is now considered to be a risky and dangerous practice to remain uninsured against these threats.
An average Cyber event costs almost $200,000 should it occur, which far exceeds the average cost of any other threat they face. The stark reality of all of this is that a small business lives in the same technology world of a big business, and the same threats and Cyber criminals live there too. These bad guys know the big money is the small business class, who has fewer controls in place, greater human error potential, and an opportunity for larger economic gain.
What would US Pro advise if asked by a small business what they should be insuring in the face of the technology threats they face? I would simplify my answer into three specific areas every small business should know.
What are the Cyber Threats?
While hacking is the most widely reported event, it is far from the biggest threats facing small business. Find out what these real time 2015 threats are in next week’s CLUE newsletter!
What policy should I buy?
We see it every day. Cyber being packaged into GL coverage. Cyber providing highly limited coverage. The worst of all- no Cyber coverage purchased at all. Underinsured and uninsured customers will bring an E&O claim against you! Find out what policy you should buy in next week’s CLUE newsletter.
What happens if an event occurs?
This is one of the least asked questions in Cyber Insurance, yet it is one of the most important policy features. Knowing what to do and who to turn to from the very moment you become aware of an event can save time, damage and money. Discover how the best coverage forms respond when an event occurs in next week’s CLUE newsletter.