Sadly, data breaches and other cybercrimes are becoming increasingly common. In the past two years, data breaches have resulted in significant fines and legal fees (not to mention headaches) for a discount retail chain, one of the nation’s largest banks, a well-known health insurer, a chain of entertainment and the federal government.
But not only large organizations are at risk of being hacked or infected with a virus. Did you know that 55% of small businesses have experienced data breaches and 53% have experienced multiple breaches? one
A data breach can damage more than just your small business computer system – it can also damage your reputation and put your customers and / or employees at risk. That’s why cyber risk insurance can be a smart precaution for businesses of any size.
What is cyber risk insurance?
Cyber risk insurance generally covers your business liability in the event of a data breach involving confidential customer information such as Social Security numbers, credit card numbers, account numbers, license numbers from driving and health records.
Does my liability policy cover cyber liability?
The general liability insurance covers bodily injury and property damage resulting from your products, services or operations. Cyber risk insurance is often excluded from a liability policy.
What does cyber risk insurance cover?
In addition to legal fees, cyber risk insurance typically helps:
- Notify customers in the event of a data breach
- Restore the personal identities of affected customers
- Recover compromised data
- Repair damaged computer systems
Most states require companies to notify customers of data breaches involving personally identifiable information 2 , a process that can be very costly. And while most states don’t require companies to offer free credit checks after a leak, such a gesture significantly boosts public relations.
Nationwide Cyber Risk Insurance
Nationwide, in conjunction with the Hartford Steam Boiler (HSB), offers cybersecurity coverage and services to small business owners. We offer three coverages and insurance services against cyber risks :
- Data disclosure protection , which includes credit checks and services provided by a public relations firm.
- Identity Recovery Protection , which helps identity fraud victims restore their credit history.
- Cyber protection , which protects your business against damage caused by a virus or computer attack, as well as helps pay the cost associated with restoring and recreating data.
We also offer tips to help you manage your IT and technology risks resulting from data loss and leakage, denial of service attacks, malware, viruses, and more.