Data breach, stolen identity, cyber attack, ransomware, phishing, virus, hacked. These are words that have become all too common in today’s society. Almost all businesses use some form of technology, and have your information stored on that technology. Insurance companies have information about you and your family members, your autos, your home and your business. Doctors offices have information about you and your medical conditions. Hotels store your vehicle’s tag number and credit card information. Credit reporting agencies, such as Equifax, basically have your entire life history on file.
As a business owner, you take precautions and make sure you have security on your computer systems. But, as we often see, the bad guys will find a way around even the best security. The recent data breach at Equifax is a good example of this. 143 million American consumers had their personal information exposed. According to the Federal Trade Commission website, the hackers accessed people’s names, Social Security numbers, birth dates and addresses. And, in some instances, driver’s license numbers. They also stole credit card numbers for about 209,000 people. And, if that wasn’t enough, they took dispute documents with personal identifying information for about 182,000 people.
What Could a Cyber Attack Cost?
A cyber attack can be costly, even devastating, to a business of any size. There are several costs that may be incurred depending on the specific situation. Here are a few of them:
- IT Forensics team to determine if a breach occurred and the extent of the breach
- Professional assistance to notify those who were affected or potentially affected
- Legal defense, court ordered compensation to affected customers and other related expenses
- Cost for credit monitoring for at least 12 months for each consumer who was affected
- Cost to restore data back to your computer system
- Possible lost business due to computer service interruption, tarnished reputation and employees helping affected consumers instead of focusing on their normal job duties
How Can You Protect Your Business From a Cyber Attack?
Prevention is always best, so visit with a reputable IT company to make sure you have the proper security on your systems. Also, make sure you have cyber liability and data breach coverage on your business insurance policy. There are various levels of coverage; therefore, you want to be sure you are dealing with an insurance agent who understands the coverage. A good agent will help you find the coverage that is right for you.
Who Needs Cyber Liability Insurance?
Does your business use computers? And, do those computers contain any client information that can be used to identify that person? Furthermore, do you have any information that could be considered sensitive or confidential? If you answered yes to any of these questions, then you need insurance to protect you from a cyber attack. Call RCI Insurance Group today to talk to one of our commercial insurance agents. And, stay tuned because we will be sharing some real life cyber claims in our next blog.