Cyber Liability Insurance

Cyber risks are more real than ever. Every business and organization needs to protect their assets with Cyber Insurance from TROXELL.

WHY CYBER INSURANCE?

It doesn’t take a hacker to cause a breach. The most frequent cause of a loss is a lost or stolen device.
Cyber-attacks targeting small business are on the rise. 1 in 5 small businesses fall victim to cybercrime each year. Of those, 60% go out of business within 6 months of an attack.
$201 is the average cost paid per lost or stolen record. On average, 29,000 records are compromised during a hack or breach. This results in the average cyber-attack costing over $5 million. This average cost includes direct (forensics, hotline support and credit monitoring) and indirect costs (loss of clients and employee time).
EACH AND EVERY industry is vulnerable. A data breach or cyber-attack can happen to any type of business including education, financial services, nonprofits, professional services, manufacturing, hospitality and retail sectors.

Call the TROXELL team of experienced insurance experts to discuss your options for making sure your business is covered with Cyber Liability.

COMMON CYBER MISCONCEPTIONS:

“Only large organizations are targeted.”

False. Cyber crimes often target small business. 36% of all targeted attacks are directed at companies with less than 250 employees.

“We’ve never had an issue before.”

There are two types of companies: those who have been attacked by a cyber crime and those who have not. Cyber attacks are on the rise.

“We use a 3rd party vendor for our credit card payments, so we are already covered.”

You are not protected by the third party vendor:

State and Federal fines are levied against the retailer, not the third party vendor.
Retailers must provide their own defense and are responsible for customer notification.
Credit Card vendors have no stake in rebuilding relationships between business owners and their customers.

Examples of Cyber Claims:

Unauthorized Access

A computer hacking group gained access electronically to the computerized cash registers of a restaurant chain and stole credit card information of 5,000 customers, starting a flood of fraudulent purchases.

Human Error

An employee of a private high school mistakenly distributed via e-mail the names, social security numbers, birthdays, and medical information of student and faculty creating a privacy breach. Overall, 1,250 individuals’ personal information was compromised.

Theft of Digital Assets

A regional retailer contracted with a third party service provider. A burglar stole two laptops from the service provider containing the data of over 800,000 clients of the retailer. Under applicable notification laws, the retailer—not the service provider—was required to notify affected individuals. Total expense incurred for notification crisis management to customers was nearly $5 million.

Privacy Breach

An employee of a rehabilitation center improperly disposed of 4,000 client records in violation of the center’s privacy policy. The center settled the claim with the state of Massachusetts and agreed to pay fines and penalties as well as extended $890,000 in customer redress funds for credit monitoring on behalf of the victims.

Learn more Cyber Risks Basics at our blog.