Our Blog

Insuring Your Business Against Cyber Liability

One survey found that 62% of small business executives are concerned about cybersecurity and IT risks. And yet, nearly 90% of...


One survey found that 62% of small business executives are concerned about cybersecurity and IT risks. And yet, nearly 90% of small- and medium-sized businesses in the U.S. don’t use data protection for company and customer information.¹

Business owners are also required to protect their customers’ personal information. In 47 states, and the District of Columbia, businesses are required to notify individuals of security breaches involving personally identifiable information.²

As evidenced by news of large-scale data breaches, online hacking has become another form of risk that businesses now face everyday. Like many risks, businesses can insure themselves against the financial damage a cyber-attack may inflict.

Cyber liability insurance may cover a range of risks, including:

  • Data Breach Management: Pays expenses related to the investigation, management, and remediation of an incident, including customer notification, credit check support, and associated legal costs and fines.
  • Media Liability: Covers third-party damages such as website vandalism and intellectual property rights infringement.
  • Extortion Liability: Reimburses for expenses associated with losses arising from a threat of extortion.
  • Network Security Liability: Covers costs connected with third-party damages due to a denial of access and theft of third-party information.

Cyber liability insurance is fairly new so expect a wide divergence of coverage and costs. It may be purchased separately, or as a rider to your current business insurance policy. Be prepared to comparison shop to get a better understanding of coverage and costs.

Small business owners might also keep in mind that “an ounce of prevention is worth a pound of cure.” There are steps you can take to protect your business from becoming a cyber victim.

Consider steps to protect your data.

  1. Maintain robust malware detection software and keep existing software updated.
  2. Train employees not to open links contained in emails from unknown senders. Research shows that 80% of security-related incidents are caused by employee behavior.¹
  3. Encrypt your important data, such as bank account information, customer credit card numbers, etc.
  4. Perform a security audit.

As obvious and simple as these precautions may sound, some businesses fall victim to cyber-attacks because of their failure to take them.

  1. The Guardian, January 21, 2015
  2. National Conference of State Legislatures, 2015

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2016 FMG Suite.

Stangier Wealth Management is a registered investment adviser in the States of Oregon, Texas, and Washington. The adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Individualized responses to persons that involve either the effecting of transaction in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption.
 

Back

DISCLOSURE: Investment advisory services are offered through Gretchen Stangier, Inc. DBA Stangier Wealth Management (“Stangier Wealth Management”), an investment advisor registered with the U.S. Securities and Exchange Commission. Stangier Wealth Management only offers investment advisory services where it is appropriately registered or exempt from registration and only after clients have entered into an investment advisory agreement confirming the terms of engagement and have been provided copies of the firm’s ADV Part 2A brochure and Part 3 documents.

DISCLAIMER: This website is for informational purposes only and does not constitute a complete description of our investment services or performance. This website is in no way a solicitation or offer to sell securities or investment advisory services except, where applicable, in states where we are registered or where an exemption or exclusion from such registration exists. Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding market or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Nothing on this website should be interpreted to state or imply that past results are an indication of future performance. THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED ON THIS OR ANY ‘LINKED’ WEBSITE.

You may also like

Estate Planning Tips

Estate planning is something that is often brushed aside. But planning ahead could put your loved ones in a much…

Planning for the Expected

You can plan ahead to protect yourself and your family against the financial consequences of deteriorating health.

Understanding Long-Term Care

Understanding the types of long-term-care services—and what those services could cost—may be critical.