You’re on the hook. And you probably don’t know it. A snow cone kiosk discovered this the hard way.
Do you store personally identifiable information? It’s called PII and includes names, phone numbers, addresses, and more. Data breach disclosure laws have requirements for you.
Do you take payment information? That snow cone kiosk had a $10,000 liability because their payment processor got breached. (NOTE: The kiosk never got breached – just the payment processor.) But these are just liabilities. You’ve got additional threats.
Many falsely assume they’re too small to matter. But these common threats hit more small businesses than large businesses:
- Ransomware – Your files are locked until you pay a ransom.
- Social Engineering – Bad actors hack into your system to obtain privileged information. Then they convince your employees to make payments that seem appropriate based on privileged information. You discover later that you’ve been defrauded.
- Evil Twin – A mirror WiFi network is setup at a coffee shop or other public place. Your employees login to this WiFi network and unknowingly disclose passwords and sensitive information, which is then maliciously used by the owner of the mirror WiFi (the “evil twin”).
Obviously, there are more methods and more threats. New threats emerge every day. And the most savvy businesses understand one thing:
It’s not “if”, but “when” you get hit by a cyberattack or data breach. So, plan for it.
Cyber Liability and Data Breach Insurance are part of that plan.
What Cyber Liability and Data Breach Insurance Does for You
These are the goals:
- If your data is ransomed – it pays the ransom. (Quickly, so you can get back to work.)
- If you’ve been socially engineered – it reimburses what you lost to the bad actors.
- If your data gets breached – you get a team that guides you through the legally required disclosures.
But each policy is different. And we can’t guarantee all policies will accomplish these goals. So, start with an estimate and we’ll help you understand your choices.
But there’s one thing it can’t do. It can’t turn back the clock if you didn’t get coverage.
Frequently Asked Questions
- Aren’t cyber threats a big business issue? No. Most claims are made by small businesses. Big businesses can afford more sophisticated protection – and the hackers know that. So, they target small businesses more frequently.
- Is Cyber Liability and Data Breach Insurance expensive? No. It’s currently one of the best bargains in the industry. Of course, there is a range of prices. But many small businesses can get coverage for about $1,000 per year.
- What are the legally imposed disclosure requirements? It varies state-by-state. The California Consumer Privacy Act (CCPA) is the most comprehensive. But each state has unique requirements. That’s why many insurance carriers have compliance teams that help you meet your legal obligations in the event of a breach.
- What if I have coverage under another part of my insurance portfolio? That is an increasing practice. While it’s good that you are covered, there’s an unexpected consequence. For example, if you file a Cyber Liability claim against your Professional Liability Insurance, three things may happen:
- Your professional liability renewal rates may increase.
- You could erode the limits of your professional liability coverage.
- Your carrier may not renew your coverage if you have a large loss.
For these three reasons, we recommend that you consider purchasing a separate Cyber Liability Insurance policy.
 This information provided by Daniels-Head Insurance Agency Inc. is for general informational purposes only. All information on the site is provided in good faith, however we make no representation or warranty of any kind, expressed or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on this webpage.