1. Most privacy and data breach loss exposures are NOT covered by standard business policies
Whether it’s damages to your own data, release of client information, release of employee information, denial of service, or any number of internet driven loss exposures, it is likely excluded under your business owners policy or business insurance package. Only a properly designed New York Cyber Liability policy can cover you for the exposures associated with this growing body of risk.
2. Data may be your company’s most valuable asset.
Consider the value of your customer list; if that data was stolen or clients’ personally identifiable information was hacked, what would the financial impact on your New York company be? What if your data included information that was sensitive and protected under a NDA; and then hacked and in the hands of malicious third parties? What potential liability does that expose your company to?
3. Cyber Crime is the fastest growing crime worldwide.
It’s in the press every day, new crimes, new scams, new exposures are being reported on daily – not to mention the small hacks and disruptions that never make the news! Criminals from all over the world are breaching firewalls and other protections you establish to steal data and disrupt systems. Do you want your New York business to be uninsured for this?
4. Penalties associated with release of info are serious
Federal and state laws govern the remediation of a cyber-breach where credit card info is stolen. In many cases you are subject to notifying all potential customers whose data was breached and offer them two years of credit monitoring services. Sources in the industry place the cost of this notification and monitoring at $212 per customer. If you had 10,000 records compromised that’s a loss in excess of $2 million, for which you likely have no other insurance coverage for!
On top of that is the potential costs associated under your merchant services agreement with your credit card company for forensic investigation costs, credit card re-issuance costs, and fraudulent purchases made on stolen card information.
5. Social Media is growing and exposing your company to significant media risks
Your well intention employee attempting to promote your product or service on social media outlets makes a comment that pokes fun at your competition. Your competition isn’t amused and takes this as a product disparagement and files a suit for damages. It may be just a nuisance but the cost of defending that silly act by your employee is going to cost about $15,000, just to get the action dismissed. Unfortunately your business policy won’t pay for the defense costs as it’s not covered under the personal injury section of your general liability policy, so it’s an out of pocket cost to your company. Now imagine that there’s a disparagement, defamation suit resulting from social media that has potential to run into the millions for defense and settlement? Again, likely not covered on your general liability policy; what are you going to do?
That’s our Top Five reasons for purchasing New York Cyber Liability Insurance! There’s probably a dozen other good reasons your company needs it. You don’t need to be in the tech business, you don’t need to have an e-commerce site, and you don’t need to be publishing a lot of social media posts to be exposed. Common exposures are businesses which store personally identifiable information in some electronic format, business which do some business over the internet, any business with email accounts, and any business that may be doing some social media.
That’s probably just about every business in America today! The good news is that Cyber Liability Insurance doesn’t have to be expensive. We represent the leading underwriters of this valuable coverage and would love an opportunity to speak to you further about your concerns about this risk. Please contact us in New City, New York for a consultation, we’d be happy to take some basic underwriting information to obtain a premium indication for you to show you how affordable coverage is.