Cyber Liability Insurance: Are you properly covered in the event of a data breach?

It’s been happening more and more lately, big businesses such as Target, T.J. Maxx and more have been the targets of data breach. But it doesn’t just happen to large companies…small businesses are also at risk for these data breaches. According to IBM there were 1.5 million Cyber Attacks in the United States in 2013, and that is just businesses that knew about them!

How do cyber-attacks happen?

According to IAAPA’s Fun World magazine there are a variety of ways that data thieves are able to breach your data. These ways include attaching a hidden device to your credit card machine, using malware and taking advantage of the split second before the credit card data is encrypted. According to the Computer Security Institute 2 in 5 companies experienced a cyber-security issue in the last 12 months.

What kind of damage will a cyber-attack do to my business?

There are many ways that a cyber-attack can damage your business, the first being loss of reputation. If customers find out that their data was stolen they will be wary of doing any more business with your company. In the infographic below IBM shows just how a cyber-attack could affect your business financially.


What can I do to protect myself?

• Regularly have your systems scanned for the evidence of Malware
• Make sure that all credit card information is encrypted
• Never use default passwords
• Have an experienced IT professional make sure that you have the proper firewalls, and anti-virus protection
• IAAPA suggests deleting customer data from your system after a certain time period.

Even with all these steps in place a data breach can still occur. Make sure to obtain Cyber Liability Insurance to help with the financial loss of a Cyber Liability Attack. Cyber Liability is not covered under most business general liability policy. Contact us today at 864-688-0121 to talk about getting Cyber Liability coverage for your business.


Funworld Magazine. “Preventing Data Theft”.—june-2014

IBM. “Data breach statistics”.

Chubb. “Chubb 2012 Public Company Risk Survey: Cyber”.