Protect Your Business With The Best Cyber Liability Insurance
Imagine the following scenarios:
You arrive to your office to find a distraught employee who accidentally left their corporate issued laptop on the Metro during their commute home the previous Friday evening. You call Metro and ask if anyone has turned in a laptop to the lost and found. Unfortunately, the device is gone and it contained your client base which is scratching on 1,000 records.
When it rains it pours
During a downpour one very wet Spring, you discover that water has been seeping into your storage room that houses old files and computer servers. You contact the proper services to begin the drying out process, and leave for a meeting out of town. Upon your return, you discover that some of the damaged servers and wet files were inadvertently put in the garbage on the curb by one of your employees. And, you don't know which ones were at the curb and which ones were destroyed appropriately. What you do know is that your storage room held the records of approximately 1,800 dead files that had not yet reached the 7 year threshold for proper destruction.
Bad hair day
The salon that you have worked so hard to build suffers stolen credit card records of nearly 700 clients due to a hacked point of sale machine. While you don't own the POS machine, your salon handled the transaction, and you now own the problem.
Understand that all of the above are actual examples of data breach claims. These 3 examples represent approximately $255,500 in remediation costs; costs that your business would be solely responsible for without the protection of a Cyber Insurance policy.
A 2010 study by the Ponemon Institute estimated that the average post breach cost of remediation is about $73 per record. Ponemon also determined that human error accounts for 76% of data breaches while only 24% are attributed to hacking and criminal attacks. Broken down, this is what it looks like:
- 36% due to system glitches and outdated software.
- 24% due to criminal attacks.
- 40% are due to lost laptops and flash drives.
Lebherz Insurance is the specialist for Cyber Security Insurance in Maryland. While you have heard of recent examples of data breaches in the news lately including major retailers, learning institutions, and large corporations, the fact is that the risk of a data breach is real and it can happen to anyone who stores personal private information (PPI). In simple terms, if a customer's PPI is at any point in time in your care, custody, or control, you are at risk. And the scariest part is that you are at risk even if you don't own a computer. While many Cyber Liability Insurance claims arise due to a stolen laptop or mobile phone, the paper file cabinets in your office pose serious risk as well. Imagine a windstorm that scatters the contents of one of your cabinets across town. Imagine if your point of sale (POS) credit card machine is stolen or hacked. You may think the burden lies with the POS company. But the fact is that your client will come after you because you were the one that handled the transaction. The risks are virtually endless, and cyber claims are on the rise. Significantly.
Data Breach laws vary by state. But in Maryland, if a data breach is suspected, you are required to investigate to determine if it is real or not. If it is determined that a breach has occurred, you are:
- Required to notify each of your customers that a breach has occurred, and
- Required to provide credit monitoring services for at least one year.
Lebherz Insurance: Your Cyber Security Insurance Experts
Imagine the compounding costs to notify your entire client base. Now imagine that you now have the potential for a lawsuit from each of your clients. The average cost for breach remediation is about $73 per record, prior to any legal expenses. If legal gets involved, the cost rises to nearly $200 per client, and this does not include the cost of lost business. Do the math. Businesses simply can't afford not to have Data Breach and Cyber Liability Insurance.
Call 301-662-0250 and talk to the Cyber Security Insurance experts at Lebherz Insurance and we'll provide you with quotes from the best markets available. If you prefer, simply fill out our 5 question quote form at the top of this page and we will follow up promptly with your quotes. It is really that simple. To get an idea of how much a cyber attack or data breach may cost you, try this calculator. You will be startled, to say the least!