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Does your business need Cyber Liability/ Data Breach insurance?

By May 1, 2019 No Comments

Chances are the answer is yes. If your company handles customer information in any form, there is the potential for a data breach. Even if a computer is not used in your line of work, a data breach can still occur. Lets say you go out to your truck after having lunch and find someone broke into the truck and stole your clipboard with your next job on it, that’s a data breach. Do you have client information available to you on your cell phone? If you lose that phone, that’s a data breach.
It’s not just the Target’s or the Blue Cross’s of the world that are the targets. 70% of all data breaches are small business’s with less than 100 employees. 55% of all small business’s have had a data breach. 53% of those have had more than one!
The average cost of a data breach is $200 for each and every current client, prospect or past client. Do the math, it can get expensive fast. If you choose not to report it, the Department of Homeland Security will fine you $500,000 in addition to those costs.

Costs associated to a data breach include but are not limited to;

1) cost to hire a forensic engineer to determine the extent of the breach

2) you must notify each and every single person who’s information may have been obtained by the breach.

3) 1 year of credit monitoring for each person.

Indirect costs associated are;

1) client turnover.

2) loss of reputation.

3) loss of good will.

60% of all small business’s are out of business within 6 months of a data breach.

” It takes 20 years to build a reputation and 5 minutes to ruin it” Warren Buffet