Customers and employees trust you to store their information. From billing information to social security numbers. If someone stole that data, how would that impact your business?
A manufacturing business runs on software. If someone planted a virus to shut you down and it took you a week to serving your customers, how would you recover the lost income? Plus, pay for expert help to remove that software?
Data breaches are becoming more common in businesses both large and small.
For every time a company like Target gets hacked (who have some of the brightest IT professionals in the world working for them), there are dozens of smaller companies that suffer data breaches.
Unfortunately, many of these smaller companies can't survive a data breach.
According to the Ponemon 2013 Cost of Data Breach Study, the average cost to rectify a breach has risen to 5.4 million.
In the U.S., the average cost per record breached was $188. Thus, a company with 1,000 customers would incur average $188,000 of expenses.
These attacks are not covered under your standard general liability insurance policy.
Only Cyber liability insurance, also known as cyber and cyber risk, covers losses from a data breach.