Protect Your Business from Cyber Attack with Cyber Liability Insurance
Executive Vice President
The Bank of San Antonio Insurance Group
This month, we discuss the importance of cyber liability insurance for businesses with The Bank of San Antonio Executive Vice President of Commercial Insurance Katy Brooks. A cyber security insurance professional, Katy understands what it means to protect what you build, and how devastating a cyber attack can be on a business. Read on for Katy’s advice on managing the risk of cyber security breaches.
What is cyber liability insurance?
Simply put, cyber liability insurance helps you to keep your business running if you experience a security breach, which is becoming more and more probable in today’s ever-evolving technological landscape.
Cyber liability insurance covers your business for data breaches involving customer information, like social security and credit card numbers, driver’s license information, health records and other sensitive data. This policy can cover expenses your business may incur, such as credit monitoring, forensics, legal fees, public relations, as well as liability if your business is sued by a third party. It’s important to remember that cyber liability insurance is very specialized and general liability insurance does not cover a cyber attack.
What are the chances that your business will be cyber attacked?
According to the National Cyber Security Alliance, one in five businesses are victims of cyber crimes every year, and of those businesses, 60% are forced to close their doors within six months of the attack. One breach could easily strip a business owner of hundreds of thousands of dollars in legal fees, making it incredibly difficult to remain viable. This can include the costs of:
- investigating the cyber attack
- notifying your clients that your company has been breached
- customer identity recovery
- restoring your compromised data
- operations downtime
- restoring your company’s reputation
Does my business need cyber liability insurance?
With the increase in cyber attacks, I recommend that all business owners research cyber liability insurance and its benefits. If your company handles sensitive customer information, if your company uses email, or sends faxes, you are exposed and have a lot at stake. Compromised data is a technical, administrative and public relations nightmare. Compliance violations could cost you millions. Think of it as living in a flood plain – wouldn’t you buy flood insurance?
Cyber liability insurance is another protective layer of business continuity. If your company experiences a damaging security incident, cyber insurance helps keep your business operational with minimum disruptions.
The human element can facilitate a breach.
Keep in mind that no matter how strong and safeguarded your technology is, your employees will always be your weakest link. In fact, unintentional actions, such as one-click on an email that has ransomware attached, can hold your operations hostage and possibly shut down your business. It’s vital that your people receive regular training on ways to keep your company safe from breaches.
The Bank of San Antonio Insurance Group: Your Business Champion
If you’re a business owner looking for solutions to protect your company from bad actors in cyberspace, we have them. Look to The Bank of San Antonio Insurance Group for personalized, knowledgeable risk management guidance. We’ll help you and your business obtain the technology, tools, and resources you need to protect your company from this very real threat.