No matter how big or small a company may be, every business should have data breach coverage on their company.
Data Breach Coverage covers your company in the event of loss, theft, accidental release or accidental publishing of personally identifiable information including: Full Name, Social Security Number, Bank Account Number, Email Addresses, Driver’s License Number, Credit/Debit Card Number, Patient/Medical History.
You may be saying to your self, “This can’t or won’t happen to me.” The truth is, data breach can happen at any time and under even the most secure conditions. If you have a presence on the internet, email on your sell phone, credit card machine, use a computer, etc., your data has just as great of a chance to be stolen as any other company or person, no matter the size.
It’s not just the Fortune 500 who need worry either. Out of 760 data breaches analyzed in 2010, two-thirds involved businesses with fewer than 100 employees, according to Verizon Business. As a result, a number of insurance carriers, including The Hartford, have expanded their portfolios of cyber risk coverage to include data breach coverage designed specifically for small businesses.
Data breaches can have a serious financial strain on a company. If you do not have the proper coverage, you will be paying out of pocket for: legal fees, notices, lawyer bills, potential court fees, and fines.
The costs of a data breach for companies are significant and rising. According to a study by Symantec and Ponemon Institute, the average organizational cost is approximately $214 per compromised record, up from $204 two years ago. While $214 may not seem like a lot of money, multiply it by the number of customers in a businesses date a base. Just a thousand customers whose information has been breached, can hike the average cost to nearly a quarter of a million dollars.
All business owners should contact their business insurance agent and inquiry about Data Breach Coverage. The coverage is affordable and well worth the investment for your companies future. It will provide the piece of mind of knowing that you are protecting: yourself, reputation, business and clients. Data breach coverage along with taking extra precautions, can save a lot of headache, stress and money in the end.
So don’t wait a second longer because unless you can read the future, you may be the next target on a cyber criminal’s list!