5 Reasons to Consider Liability Insurance for Your Business

Cyber crime is skyrocketing. Learn why it is important to protect your business here:

1. Value

A company’s network system and data collection are among its most valuable assets. This includes, but is not limited to, customer lists, books, records, receipts, tax documents, intellectual property, and trade secrets. Losing this information could potentially ruin your business.

2. Cyber Attack Increase

Cyber attacks are increasing! During the last year alone, data breaches increased 42%. Of that number, 40% of the breaches were at companies that had less than 1,000 employees. Even small companies are being targeted.

3. Cost

Data breach costs have skyrocketed. The average cost of a data breach has risen to $5.4 million. The loss includes business disruption, revenue loss, equipment damages, legal fees, public relations expenses, forensic analysis, and notification costs.

4. Risk

There are so many different parts of a company at risk. There is website media liability, which covers libel, slander, and copywriting. There is security liability, which covers a failure to prevent a hacker entering your system or the spread of a virus.

5. Business Laptops and PDAs

Nowadays, everyone has an electronic device that they use to check their company’s email or get into the company network off-hours. You do not want someone to find your company’s information on an employee’s device, nor do you want your employees to use a personal device, such as a camera phone, to record business documents.

 

It is clear that there are many reasons to obtain cyber liability insurance for your business. However, once you decide to get insurance, there are many different options. It can include all or some of the following: Third party technology professional insurance, privacy liability, security liability, website media liability, first party cyber extortion, first party privacy breach response, first party business interruption, data recovery extra expense, and legal and regulatory defense and penalty.

It is important to remember that no two policies are identical and the terminology can often be confusing. Attaining a cyber liability process does require specific information on your business, your systems and the level of security you have in place. If you are considering cyber liability insurance, why not call Nicholas / Tobin Insurance? Nicholas / Tobin and Associates are committed to providing residents of New Milford and Kent with quality insurance products and protection for them, their families, and their businesses. Call us today!

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