How Much Cyber Liability Insurance Should A Business Purchase
Cyber breaches that affect big businesses make the news, but over 60 percent of all cyber breaches target small and medium-sized businesses. 
Because you must protect your business, no matter what its size, purchase adequate cyber liability insurance.
What is Cyber Liability Insurance?
When your business suffers a data breach, you can file a cyber liability insurance claim. The policy won’t prevent a hack, but it will cover your financial losses and assist your company during recovery.
Common Cyber Breach Risks
Any company, from international mega corporations to small family-owned businesses, that operates online or handles customer data faces cyber breach risks such as:
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Human error - using the same password for all websites, losing unlocked devices or downloading malware.
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Mobile devices - gateway for thieves when used over unsecured Wi-Fi connections or left unlocked.
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Disgruntled former employees - use old login information to hack into your system.
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Ransomware - hackers introduce malware onto your computer, encrypt data and require a ransom before they release and decrypt your system.
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Coordinated attacks - international hacker groups target the sensitive information your company stores.
How Much Does a Cyber Breach Cost?
After a cyber breach, your company will owe first-party expenses, such as damages to your systems and data, and third-party expenses related to your liability to customers. Examples of these two expenses include:
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Customer losses - direct financial loss, credit monitoring and other related expenses.
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Business disruption expenses - account for up to 39 percent of a breach’s total cost.
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Direct financial loss - resources the hackers steal from your company bank accounts.
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Legal costs - handling lawsuits customers may file against your business.
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Regulatory fines - imposed by the FCC, FTC, HHS and your state.
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Public relations expenses - required to rebuild your company's reputation.
These and other expenses contribute to the $3.62 million global average cost of a cyber breach. Each breach affects an average of 24,000 records, reports the Ponemon Institute, and costs $141 per individual lost or stolen record. Multiply this figure by the number of confidential or sensitive records your company stores, and you get an idea of how expensive a breach would be for your business.
Purchase Adequate Cyber Liability Insurance
Many experts suggest that businesses purchase at least $1 million in cyber liability insurance. Without this valuable coverage, your company could face insurmountable financial challenges and possible bankruptcy after a cyber breach.
On average, small businesses pay from $750-8,000 per year for this valuable coverage. Because your needs vary, schedule a consultation with your insurance agent and get a detailed quote.
Protect your customers and your business with cyber liability insurance. It's essential coverage for every company.