These days it almost seems like you cannot turn on the news without hearing about yet another cyber attack. In the state of Louisiana alone, the FBI’s Internet Crime Complaint Center recorded losses over $4 million in 2003 and there were over 2,000 victims of cyber-related crimes in the state. One can only imagine what these figures must look like now when hackers and cyber criminals have so much more access to technology and new skills in this stealth crime.
With all of the numbers, you may be wondering if you should add cyber liability coverage to your commercial insurance in Louisiana. Before you push the idea to the back burner, consider the pressing reasons it should become your priority.
The IC3 established as a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C) provides consumer alerts which you can sign up to receive and protect your business from cyber crime.
Data Breaches and Cyber Attacks are a Serious Concern
Security violations occur more often to small businesses than larger ones, but only the large corporations make the news. It does not matter how big or small your business is. A data breach comes with a significant cost to your company – including interruptions, damaged branding and paying your customers.
5 Reasons You Need Cyber Liability Coverage
- If You Think It Is Expensive, Consider How Much More You Would Pay in Liability Claims – Cyber liability coverage offers high coverage with low deductibles. While it is a fairly new concept to the insurance industry, there are plenty of insurers out there, which means you have a choice of companies to compare quotes and shop around with.
- It Covers More Than You Realize – Cyber liability covers those unexpected costs of a cyber attack, including the business interruption, paying for someone to repair your company’s brand, and even covering regulatory fines or penalties. Specific terms and conditions of your policy will need to be worked out with your provider to determine what’s covered and what’s not.
- You Do Not Have a Risk Management Department – Small business owners do not have a risk management department monitoring their cyber attack risks. Cyber liability insurance in addition to your commercial insurance in Louisiana can fill the gap for your business.
- General Commercial Business Does Not Cover Cyber Liability – Do not assume your existing coverage will protect you. A general liability policy typically has exclusions that may not cover losses due to Internet risks.
- You Are Responsible – Even if your website and protected information is hosted on a third party server in a secure data center, you are liable for the shortcomings of that third party. Your business collected and stored the data; therefore, you are responsible for protecting it no matter where it is stored.
To avoid facing the significant costs associated with a data breach, you need to supplement your commercial insurance in Louisiana with cyber liability protection. The team of brokers at The Nowell Agency can help identify which policy and deductible is right for you and fill the gap between your policy and the risk associated with operating online.
Call our Louisiana Call Center at (888) 675-1842 to learn more about commercial insurance in Louisiana or request a quote for coverage online.