You may wonder whether cyber liability insurance is really necessary, especially if you run a smaller or medium sized business. The thing is, according to a study done by the U.S. Secret Service and Verizon Communications, an estimated 72% of all data breaches occurred in small to medium sized businesses.
So why do cybercriminals seek out small businesses? They're often easy targets. Small businesses are often prey for identity thieves because they typically have less security in place than larger companies.
Personally identifiable information was the most reported data breach, with credit and payment card information being one of the most frequently stolen pieces of data. If financial information is compromised during a breach, your business could be hit by heavy fines from credit and debit card companies. This is particularly true if the company was not fully compliant with requirements from the PCI Security Standards Council, a global forum for implementation of account data protection measures.
Maintaining cyber liability insurance will help keep companies operational after an attack. A cyber liability insurance policy augments and supports the business’s efforts to recover in the event of a cyber-attack. It will provide access to expert resources and financial support through investigation, notification, recovery and post-recovery activities related to a data breach event.