Protecting Your Business from Cyber Crime
Cyber crime is a growing risk for small businesses, and even a single incident can lead to financial loss, operational disruption, and reputational damage.
Many business owners assume their existing insurance, such as Commercial General Liability, will cover these events — but it often does not. Understanding your exposure and securing specialized cyber coverage is essential to protect both your business and your clients.
Q: What about a Commercial General Liability (CGL) policy — doesn’t that cover cyber crime?
A: Not at all. A CGL policy primarily covers bodily injury or property damage to third parties. It does not provide coverage for losses due to data breaches or privacy violations.
Q: Can you give an example of a cyber liability claim?
A: Imagine an employee’s company laptop is stolen from a vehicle. The laptop contains a customer database with addresses, phone numbers, and personal financial information. If this information is used for identity theft, the victims may sue the business to recover the costs of restoring their identities.
Cyber liability coverage not only protects against claims made by third parties but also covers costs incurred by the business itself. This can include restoring and securing data, business interruption, customer notification, and credit monitoring, among others.
Q: How much does cyber coverage cost, and what limits are available?
A: Miller Insurance Brokers offers a range of options. Cyber coverage can often be added as an extension to an existing package policy, typically with limits of $25,000 to $50,000. Premiums vary depending on the type of business and the coverage limit required. Higher limits are available, ranging from $100,000 up to $5,000,000, for businesses seeking more comprehensive protection.
Q: How do I know if my business has cyber exposure?
A: If your business deals with customers, you likely have some level of exposure. Even losing a smartphone can result in a significant breach, depending on your business and clientele. Speaking with your broker can help determine the right coverage for your needs.
Q: What does cyber protection mean for the business owner’s clients?
A: When a cyber breach occurs, the business is not the only victim. Stolen information is often used maliciously, and victims of identity theft can spend an average of 600 hours over several years restoring their identities — equivalent to roughly $16,000 in lost income per person. By securing proper cyber coverage, business owners demonstrate to their clients that they take their protection seriously.
Discussing insurance needs with a trusted broker is the best way to ensure your business is protected against potential cyber threats. Contact Miller Insurance Brokers today to review your policies, assess your exposure, and find a cyber liability plan that fits your business. Remember: if it’s worth protecting, it’s worth talking about.