5 Things Every Business Owner Needs to Know About Cyber Liability

We live in a digital world with real life consequences.  

Cyber Liability went from a curiosity to a necessity fast. It is now an essential coverage for businesses, but so few understand it.  

We’re here for you. 

You got questions and we got answers. Let’s get to it. 

You Are Liablie! 

“I’m too small to worry about a cyber breach.” 

We hate to burst your bubble, but no one is too small. You may think that since your business doesn’t involve the transfer of data, you are fine. Let’s say you own a restaurant. If credit card information is taken from your POS, then you are liable.  

Here’s another example. You own a coffee shop, and someone is connected to your wi-fi. If their information is stolen while on your wi-fi, you are liable. It is important to understand how these situations can be prevented and if they occur, that you are properly covered. 

The Restoration Process 

A cyber claim can have an even bigger impact than a physical one.  

If a car crashes into your storefront, you know exactly how it’ll be fixed, even if you don’t do it yourself. With a cyber breach, you are left clueless to how the breach happened and what plug is needed. There is much less clarity, and it requires a team of experts. These experts would be at your disposal with a cyber liability policy.  

There is also a loss of reputation when a breach happens. People might hesitate to engage in business with you after a breach. A cyber liability can also soften this blow, with a Loss of Reputation endorsement.  

It is naive to think that you’ll be up and running soon after a breach. You need to be prepared for the restoration process and how it will disrupt your business. 

Ransomware 

No one wants to hear about a worst-case scenario. 

However, with ransomware, it is a reality. Cyber criminals wait for when your business is most vulnerable to strike. That may be your peak season or when your defenses are the lowest.  

That’s why ransomware is an important part of cyber liability. You’ll have access to expert negotiators who understand the best way to communicate with these criminals and to get you back in business quicker. A ransomware policy also pays the criminal in this instance.  

No one wants to be negative, but you should be prepared. Having these resources on your side will turn a potential catastrophe into a more manageable situation.  

Business Interruption 

Rule of thumb: A coverage that is on your physical property will not translate to a cyber loss. 

That means if you have business interruption coverage on your commercial property policy, you cannot expect it to cover any business interruption from a cyber loss. 

The good news? 

When you do have a cyber liability policy, the business interruption is included. This is a relief for any business owner. It‘ll help you sleep better at night knowing your business can close or operate at limited capacity and the gap win profitability will be handled.  

Social Engineering AKA Cyber Crime 

Social Engineering is a fancy term for a not-so-fancy activity.   

It refers to phishing activity in which a criminal pretends to be a high-ranking official in a company and asks for funds to be sent by an employee. It is the most common cyber-crime and loss.   

Due to it being such a common occurrence, it is supplemental coverage on a cyber liability policy, meaning there is a limit on how much a claim can get paid out. (Somewhere in the range of 25k to 100k) 

But even with that sublimit, you’ll be happy to have it in the event it happens to your business.  

Well, there it is! Top 5 Things to Know About Cyber Liability. Do you want further explanation of anything? Have a question not addressed here? Feel free to contact us and we’ll be happy to help!