Commercial Insurance

10 Reasons Why You Should Consider Cyber Security Liability for Your Business

•Information and Intellectual Property is an organizations most valuable asset today. Therefore the impact of data breach, malicious programming, etc. can have dire impacts on an organization.

•As technology becomes increasingly prevalent in society and business, so have the exposures. (Ex. Misplacement or theft of a company blackberry/pda, hacker attack, virus transmission, email sent to wrong contact that contains privileged information, employee sabotage, fraud, system malfunction)

•The potential cost of a breach can be substantial. On average, it costs $200 to replace a single lost record. These costs are incurred by system back-up work, data restoration, customer notification, loss of reputation, etc.

•If your business maintains a data base with sensitive customer information, sensitive employee information, confidential third party information.

•If this private information is ever stolen, HIPPAA requires your company to notify all employees, vendors, and clientele. This will inevitably result in loss of business, reputation, and is an exposure to third party liability lawsuits.

•Identity theft and data breach is the #1 crime in the United States and consistently growing each year, due to low overhead and physical risk to the criminals.

•In 2009, 85% of businesses had experienced a data breach at some point in time. 222,000,000 records were penetrated during this year as well.

•70% of company assets are tied to information resources.

•Cyber security products are becoming more comprehensive and provide significant limits for a relatively minimal cost.

•The business interruption alone can cause hundreds of thousands of dollars in expenses.