Cyber Privacy Liability Insurance
Why Do You Need Cyber Privacy Liability Insurance?
Cyber privacy theft and or a data breach have become a common threat to small business owners. Any time you collect any personal data from your customer you are exposed to a personal liability loss or Cyber Liability Insurance loss. The average cost of a data breach is $204 per lost record, with more than half of such costs attributable to lost customers and the associated public relations expenses to rebuild your organization’s reputation.
If you gather and keep on file any of the following types of personal information, your firm is at risk for a Cyber privacy loss.
- Social Security Numbers
- Credit Card Information
- Date of Birth
- Bank Account Numbers
- Private Medical Information
- Employee Records
- Driver License Numbers
What Does Cyber Privacy Liability Insurance Cover?
Privacy Liability Breach
An employee of a small doctor’s office improperly disposes of old patient records that were no longer patients. However, social security numbers, date of births, names, addresses, telephone numbers as well as sensitive medical information were all contained in the paper files. Several of the patients were victims of identity theft. The doctor had to agree to pay for credit monitoring and any financial loss sustained due to this breach of privacy.
Unauthorized Access a Cyber Liability Breach
A computer hacking group gained access electronically to the computerized cash register of a restaurant and stole credit card information of customers starting a flood of fraudulent purchases around the world.
Privacy Liability Breach or Human Error
A non-profit organization printed two 1099 forms on one piece of paper. A volunteer was supposed to separate the forms and send each to the rightful owner. Instead, one person received both copies. Several people received the social security numbers and tax forms of others.
Cyber Liability Theft of Digital Assets
A regional retailer contracted with a third-party service provider. A burglar stole two laptops of the service provider containing the data of over 800,000 clients of the retailer. Under applicable notification laws, the retailer – not the service provider – was required to notify affected individuals.
Cyber Liability caused by Malicious Code
A computer worm infected computers to launch a denial-of-service attack against a small computer consulting firm. The infection caused an 18-hour shutdown of their computers. The computer consulting firm incurred extensive costs and expenses to repair and restore their system.
The fact is small businesses that more than ever, small businesses are at a high risk for attack. Cyber Privacy Liability Insurance covers losses, yet many small businesses go without it and end up but paying out several thousands of dollars to repair their reputations and rebuild the trust with their customer base. Thieves know that a lot of small businesses do not have the sophisticated computer firewall systems to protect their customer data from a data breach theft. In short small businesses are easy targets!
You can protect your business by investing in some preventive measures like using secure email systems, and payment systems. Monitoring employee’s internet activity. Keep virus software up to date. Mind you, you will not be able to use technology to protect your business completely.
I know buying Cyber Privacy Liability Insurance will not protect you or your business from these types of threats, but it can help you defray the costs that come with repairing the damage to your business. If you would like a FREE Cyber Privacy Liability Insurance quote to complement your Business Insurance coverage, give us a call at 800-452-6826.