Cyber Liability Insurance for Your Small Business

Posted October 11, 2011 Company News

We’ve all seen it: that unusual email from a contact in your address book with a strange subject line. Sometimes these emails contain the name of a prescription drug “that really works!” or a request from your bank asking to verify your credit card number. While these attacks can range from mild to devastating, it was believed these attacks would be personal in nature only. Business owners never believed hackers would eventually be able to harm their businesses – small and multinational alike.

While information hackings of multinational companies have topped the recent news (Sony and Lockheed Martin come to mind), small businesses are becoming the new target for these hackers. Why? More small companies have been converting paper documents and files to computerized records. Also, the “mom and pop” shops of the world have begun accepting credit cards for payment. While this makes running their business simpler and more effective, it also makes their business more susceptible to hacking. To make a bad thing worse, small businesses typically do not have the technological background or budgets to ensure a state-of-the-art security system that would secure this protected information.

Even if you have security in place for your electronic data, how can a company use insurance to help protect it from financial losses due to these attacks? The answer lies in Cyber Liability Insurance. Cyber Liability can help protect your company from data breaches, along with other losses that may result from illegal hacking or gaps in security.

For more information on adding Cyber Liability to your coverage, please contact our Small Business Department at [email protected].

 


Please note that the information contained in this document is designed to provide authoritative and accurate information, in regard to the subject matter covered. However, it is not provided as legal or tax advice and no representation is made as to the sufficiency for your specific company’s needs. This document should be reviewed by your legal counsel or tax consultant before use.