Cyber Liability Insurance in NJ
Is your business protected against cyber attacks or digital disasters?
Data breaches have become too common for small businesses and large firms. What are the steps to take now to protect your business and your clients from being victims of cyber crimes in the future? Consider cyber liability insurance in NJ.
$117K
$1.3M
Does General Liability Insurance cover a cyber breach?
Liability insurance covers physical damages to lives and tangible property. Tangibles are items covered that have a dollars and cents value impacted by the loss of services, products or other unplanned interruptions.
But what about a cyber breach? Most liability policies don’t begin to cover these digital mishaps. The latest statistics show that over 55% of data breach problems occur to smaller companies.
A cyber attack will not only damage the entire computer system, but can also damage a company’s reputation and valued customers. Small business owners do not have rainy day funds to overcome these losses, making it even more necessary and prudent to have a cyber liability insurance policy.
- The average cost of a data breach in the US is $1.3 million for enterprises
- Small and medium-sized businesses spend an average of $117,000 to recover from data breaches
- 54% of businesses worldwide have reported a data breach or cyber security attack
First vs. Third-Party Cyber Coverages
First-party cyber policies include multiple crime and property coverage. Certain costs and notifications might be covered. They also might require a deductible. Also included is:
- Electronic data loss or damage
- Loss of income or added expenses
- Cyber extortion losses
- Notification costs
- Reputation damages
What is Covered by Cyber Liability Insurance in New Jersey?
NJ Cyber Liability Insurance generally covers:
- First and foremost, to ensure customers are notified if a data breach occurs.
- Assistance with associated legal fees.
- Recovery of compromised data.
- Repairs for damaged computer software and hardware.
- Restoration of all personal customer identities and information.
A third-party cyber liability insurance NJ policy adds liability protection for any business whose actions, or lack thereof, inadvertently caused a client cyber attack or data breach. If the client sues, businesses can benefit from this type of legal expense coverage. This can include:
- Electronic media liability – infringement of copyrights, domain names, websites trademarks, slogans and other business assets
- Payments such as judgments, settlements or civil awards, a business is legally required to pay.
- Employee privacy liability and future network security.
- Attorney hiring feeds
- Cover banks for reissuing credit cards
- Pay off fines and penalties from the government
$86,500
Small Business is the New Cyber Target
A report from Internet security firm Kaspersky Labs raises the claim that the average cost of a small business data breach is $86,500. Not an earth-shattering sum, but large enough, most small businesses and firms cannot cushion that blow alone.
Remember, 55% of cyber attacks do hit small businesses in New Jersey and across the nation as well. A sad but true fact is cyber thieves follow the money. If a business accepts credit cards, stores information, or conducts business in the cloud or online, that small business can be an easy target for a cyber attack.
Why take a gamble to not be covered with specialized cyber liability insurance? Aren’t your customers and employees worth more than this magnitude of risk to their privacy and their financial security? A breach will cause both customers and personnel to lose faith in the entire system of your firm.
With cyber liability coverage, small businesses no longer have to walk this path alone. Cyber liability insurance in New Jersey gives security to the business owners, employees, and customers that the work of the day is being done with security at the forefront of the business venture. The customer knows they are covered in the best possible way if and when a breach should ever happen.
Cyber attacks can’t always be avoided, but the way businesses use available budgets and other resources in the future will mitigate the negative impact these breaches have on companies and our economy.
