Top 5 Reasons Why EVERY Small Business Needs Cyber Liability
Pop Quiz, hotshot. You show up to work on Monday morning and try to open your electronic customer files. The files are empty. What do you do?
Hacking is real. It happens every day and it’s much more than the Russians messing with the government. Small businesses are starting to become an easy target for cyber criminals. Don’t believe me? Don’t think it can happen to you? Okay, check out this real-time map of cyber-attacks from around the world.
Do I have your attention now? Good. Now let me break down why I believe you need cyber liability coverage for your business and here’s why:
1. Having someone to call
This may be the most important reason. Who would you call if your customer information has been stolen? How would you notify your customers? Do you have to notify your customers?
These questions are easy if you have a cyber liability policy. Cyber Liability policies provide you with a breach coach that will answer your questions and help you determine what you need to do. They connect you with computer experts, attorneys and public relations firms to help you with everything. They handle everything for your business giving you the confidence and swagger of Tom Brady running a two minute drill.
2. Your current insurance policies won’t cover it
That’s right, let that sink in for a minute. Insurance companies have been on a mission to exclude everything remotely related to a data breach from your general liability policy. Cyber threats were not an issue when general liability policies were originally written. That’s why you need to make sure your insurance policies are keeping up with technology.
3. No one is going to buy it for you
I hear this all the time, “My data is in the cloud and they protect it for me”. Okay, so how are they protecting it? Do they have a cyber liability policy? Do you know what the limits are? Are you named on the policy? At the end of the day, you are legally responsible for your data. I wouldn’t want the future of my business resting in someone else’s hands, would you?
4. It’s not hard to get
Almost every insurance company out there is starting to offer some form of cyber liability coverage. You might even be able to add it to your current policy. Long gone are the days of filling out 10 page applications. Most applications now only have 10 to 15 questions.
I can read your mind. You are saying, “It might be easy to get but I can’t afford it”. Dnnnt Wrong!! Cyber Liability is more affordable than ever. Lots of competition has brought down the price. We have added cyber liability coverage to some policies for less than $200 per year! That is less than $20 a month. Think of it like this… How much does your attorney bill an hour? I think you will agreed this is very inexpensive risk management.
5. You owe it to your customers
Your customers trust your company to keep their data private and secure. Sometimes even the best firewalls can’t keep the criminals out. Wouldn’t you feel better knowing that your customers would be taken care of if something bad did happen? Your odds of keeping a customer after a data breach will be much higher if you take care of them. At the end of the day, just do what’s right for your customer. In doing so you will be doing what’s best for your business.
By: Ryan Swalve – Co Founder – Coverage Direct
Ryan has spent the last 13 years working in the insurance industry.
Ryan has worked for two national brokerage firms and a national insurance carrier. Ryan holds both a Bachelor of Arts and Master of Business Administration degree from the University of Iowa.
Ryan also holds the Chartered Property Casualty Underwriter (CPCU), Associate in Underwriting (AU), Certified Insurance Counselor (CIC), Certified Insurance Service Representative (CISR) and Certified School Risk Manager (CSRM) designations.