(Security Magazine, February 29, 2020).
These breaches can be costly to address and extremely damaging to a small business both financially and reputationally. If financial information is compromised, a small business could suffer heavy fines, particularly if the business did not comply with security standards. Moreover, should a hacker access a small business’s banking credentials, the bank may not be responsible for restoring the funds.
These risks can be mitigated in multiple ways, including technology, risk prevention planning and training, ongoing monitoring, and insurance. A cyber policy can protect a business from a full range of cyber incidents, including breach of personal information, threat of unauthorized intrusion into or interference with your computer systems, damage to your data and systems from a computer attack, and cyber-related litigation.
C&F Digital Partners offers Cyber Risk as an optional coverage endorsement to the Business Owners Policy (BOP).
The policy provides coverage for expenses, defense costs, and liability for risks such as:
The BOP Cyber risk endorsement also includes coverage for Identity Recovery. This provides business owners and eligible employees with case management services and financial resources to recover control of their identities after an identity theft.
The BOP Cyber Risk option covers both first and third-party claims to provide comprehensive protection. The following exhibit provides a summary of coverages provided by the BOP Cyber Risk coverage option, and provides an overview of the types of claims a small business could experience stemming from a cyber attack.
Data Compromise Liability
Should insured’s customer or other third party be impacted by a breach of their personal information, this coverage provides defense and settlement costs in the event of a suit.
Network Security Liability
Provides defense and settlement costs in the event of a suit alleging that a system security failure on the part of the insured caused damage to a third party.
Electronic Media Liability
Should information displayed on a website cause alleged damage to a third party, this coverage provides defense and settlement costs.
No business is immune to a cyber threat and the direct costs and indirect losses from reputational damage, third party suits and lost time could force a small business to shut down. Cyber coverage is a cost effective add-on to a BOP that could mean the difference between success and closure for a small business owner.
This material is provided for information purposes only and is not intended to be a representation of coverage that may exist in any particular situation under a policy issued by one of the companies within Crum & Forster. All conditions of coverage, terms, and limitations are defined and provided for in the policy.