Cyber Liability Insurance
Cyber Liability Insurance
Cyber Liability Insurance provides critical liability coverage necessary for any business or practice that relies on electronic data, computers and networks to manage information. Simple tasks, such as sending an infected e-mail that brings down a customer’s or supplier’s network, can result in liability. Cyber Liability provides coverage for third-party claims relating to privacy injury, identity theft or network damage.
Who should buy this coverage?
- Retail and wholesale establishments that accept credit card transactions – online and offline
- Service occupations, such as printers, accountants, lawyers, etc.
- Manufacturers
- Financial service firms, including banks, insurance agents and mortgage brokers
- Medical offices, pharmaceutical companies and other health care service providers
- Any company that stores their employees’ non-public private information on a network
Commercial Property Insurance, Crime Insurance, Electronic Data Processing Coverage, Commercial General Liability Insurance and Technology Professional Liability will not provide defense nor pay for a Cyber Loss.
Not convinced that you need to purchase a separate Cyber Liability policy yet?
Go and research it yourself – Data Breach Risk Calculator
This is a very good tool that will help you determine:
- The likelihood that your company will experience a data breach in the next 12 months.
- The cost per record in the event of a data breach at your Company
- The cost of a data breach at your company
Due to the various regulatory measures required during the average data security breach, the minimum amount you will spend OUT OF POCKET, if you do not have a Cyber Liability Insurance policy will be at least $500,000! Do you have that amount of cash lying around in your back account? Most business do not and in fact most go out of business within 3-6 months as a result. Review the chart below for all of the components that will come into play should you have a data breach:
SAMPLE COST ANALYSIS OF CYBER LIABILITY INSURANCE CLAIM
| Internal Investigation Costs for 5,000 Compromised Files | -20% | Average | +20% |
| Cybercrime Consulting | $27,600 | $34,500 | $41,400 |
| Attorney Fees | $27,984 | $34,980 | $41,976 |
| Sub Total | $55,584 | $69,480 | $83,376 |
| Notification/Crisis Management Costs for 5,000 Compromised Files | -20% | Average | +20% |
| Customer Notification Certified Mail | $50,880 | $63,600 | $76,320 |
| Call Center Support | $36,000 | $45,000 | $54,000 |
| Crisis Management Consulting | $20,160 | $25,200 | $30,240 |
| Media Management | $3,954 | $4,950 | $5,976 |
| Sub Total | $110,994 | $138,750 | $166,536 |
| Regulatory Compliance Costs for 5,000 Compromised Files | -20% | Average | +20% |
| Credit Monitoring Affected Customers | $231,360 | $289,200 | $347,040 |
| Regulatory Investigation Expense | $85,584 | $106,980 | $128,378 |
| State and Federal Fines of Fees | $181,536 | $226,920 | $272,304 |
| Sub Total | $498,480 | $623,100 | $747,722 |
| GRAND TOTAL | $665,058 | $831,330 | $997,634 |
Still not convinced? Do your homework on Cyber Liability Insurance! Go to www.datalossdb.org to review the statistics yourself. For anyone who shops at the large retail stores in the US – you will recall one of them having quite a debacle in 2013 over a data security breach. Over 110 MILLION (yes I said Million) individuals were impacted by this scenario.
But that is only one example – data security breach is happening every single day. Protect yourself and your company TODAY – call us to review your Cyber Liability Insurance options today
We Provide Cyber Liability Insurance for all of NY businesses including the Syracuse, Utica, Buffalo, Rochester, Watertown, Albany as well as downstate in NYC, Manhattan areas.
