Stay Protected with Cyber Liability Insurance
The Digital Age
As any savvy business owner knows, purchasing general and professional liability insurance is simply smart. But in today’s hyper-connected digital world, in which phishing emails, misplaced laptops, or weak passwords can result in a massive data breach, it’s clear the rules are changing. Even though the number of annual data breaches is on the rise, the need to combat cyber thieves is hardly new. Unfortunately, many small and medium-sized business (SMB) owners remain unprotected in the event of a network intrusion.
Recovering From an Intrusion
Even though Cyber Liability insurance won’t stop data thieves from trying to penetrate digital security protocols, there are plenty of reasons SMBs might want to invest in cyber liability:
- Cost: Data breaches can constitute an average consolidated cost of over 4 million dollars.1
- Frequency: Breaches happen all the time. Nearly 2 thirds of surveyed SMBs have been the victim of data theft in the last year.2
- Efficacy: Of those same surveyed SMBs, 90% stated that their Cyber Liability policy covered all aspects of the suffered theft.
- Risk management: Preparing for every possibility is just smart. Cyber Liability insurance is one more way to keep your business safe.
It’s About More Than Money
Businesses that purchase Cyber Liability insurance do so because they understand the long-term financial and reputational costs associated with a data breach or hack. A loss of consumer confidence can have an acute, lasting impact that many small businesses often can’t overcome. At the end of the day, even though our world is more connected than ever, a small businesses’ digital reputation is a driving factor in consumer loyalty.3
- Ponemon Institute, 2018
- Argo Group, 2018
- Edelman Trust Barometer, 2018
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.