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Cyber Liability Insurance and Your Business

By February 5, 2020 Business Insurance
laptop with coding on the screen

Data & Security Breaches and Cyber Liability Insurance

These days, one of the most common and popular types of corporate litigation has been lawsuits springing from cybersecurity-related issues. Data breaches have become a primary risk for hundreds of thousands of businesses, including some of the biggest and most successful household-name companies. In 2019 alone, companies such as Facebook, Capital One, Canva, Quest Diagnostics, and DoorDash all suffered from cyber-attacks, costing them millions of dollars in damages. If large companies with cybersecurity walls that tall are suffering, then it’s definitely time to consider cyber liability insurance for your company. No matter how much you’ve invested in cybersecurity, the fact is that in this day and age, you need to get coverage for this high of a threat. 

When a Cyber Attack Affects You

Getting hacked is embarrassing for anyone, but it also could cost real dollars. Those real dollars include getting your business website scrubbed and back to order through your hosting provider, potentially dealing with a public relations announcement to notify your clients of the breach, dealing with extortion attempts, and paying damages to clients, customers, and suppliers who are affected by your breach. All those expenses aren’t even considering the extra amount of hours your employees might have to put in to operate in full emergency mode, fixing the issues in a timely but pressing manner.

If your business relies heavily on web-based sales, a cyber liability insurance policy is an integral part of a business plan. Even one minute of your server being pulled down for safety scrubbing can mean thousands of dollars out of your business pocket. To put it into perspective, Target’s data breach cost the company $162 million dollars. The most recent IBM-Ponemon Study (2019) found an average data breach to be $242 per stolen record, which equates to just over $8 million for an average breach, and that the average amount of time it took to identify and contain the average breach was 279 days.  If those statistics weren’t alarming enough, the IBM study also cited that a typical company has a 29.6% chance of experiencing a breach in the next 24 months. Also, if a hacker succeeds, the time that it takes a hacker to extract secure data from your website has gone from months or days to hours or minutes. The risk is just too great to leave your business unprotected. 

San Antonio and Austin companies, as well as surrounding area businesses, should consider SOGO for your cybersecurity needs, so you’ll be protected against the expenses associated with a potential data breach. Don’t be concerned and overwhelmed if you don’t know the risks. Our agents will help you scrub and evaluate the data liability risks you face, and find you a policy that works for you. 

 

In case you missed it: “Ways San Antonio Manufacturers can grow in 2020” has a breakdown of why San Antonio manufacturing companies need SOGO to help with several available insurance policies. We’re a manufacturing city and are proud of our clients and products that come from our hometown. Let us help you protect that pride. Call us, or even email us, to talk through your best options today.