During 2019 the average cost for a cybersecurity incident for a single company was found to be around $3.9 Million according to research by IBM! It’s also worth pointing out that IBM found that losing or exposing sensitive customer information can tarnish your company’s reputation—and that it is extremely hard to recover from!
If you have General Liability Coverage, that only covers against physical damage to your place of business or physical assets—but usually will not have anything having to do with cybersecurity or incidents that occur in cyberspace! Some General Liability coverages will include something like “digital data protection endorsements”, but this wouldn’t cover a cyberattack, only things like physical damage to equipment that results in data loss! (Like a glass of water falling and shorting out your business’ server!)
Cyber Liability Insurance should be used by businesses that conduct business on the internet or have systems connected to the web, the reason being is there will likely be personal information such as debit card or credit card numbers being transmitted over the internet to make a purchase! Since the internet is becoming such a crucial part of business in 2020, having Cyber Liability Insurance should be a priority for any business that intends to join in on the growth of business on the internet!