Reasons Why Cyber Liability Insurance Is Vital to a Business

Any company can become the victim of a data breach. From an individual’s personal details to the corporate documents required to run a business, there’s no shortage of sensitive information that is at risk of being lost or stolen. Following are the reasons why businesses should consider cyber liability insurance in PA.

No Business Is Immune

Since 2013, billions of records have been lost or stolen. Over 1.9 million are compromised every day, and this is not restricted to larger companies. Even the smallest of organizations are at risk. Unfortunately, the costs of a data breach could be exorbitant and detrimental to a business.

Breaches Are Expensive

Of course, not every situation plays out the same; however, the average total cost of a breach is $4 million and that number continues to rise. There are many ways an unauthorized disclosure can empty a company’s pockets, including:

  • Notification costs
  • Damages and legal expenses resulting from a lawsuit
  • Fines imposed by the Payment Card Industry or HIPAA privacy laws
  • Forensic investigation expenses
  • A network shutdown
  • Cybercriminal extortion demands

Breaches Are Out of Your Control

A strong IT department and secure network are helpful; however, even the most prepared business can’t prevent a violation from happening. Cybercriminals evolve with security technology. Also, simple mistakes such as lost laptops and un-shredded documents open a company up to significant financial loss.

A data breach may be unavoidable, but a business armed with robust cyber liability insurance in PA can mitigate a difficult aftermath.