2012 is the year of the Data Breach! Do you electronically store any information for your business? Due to the capabilities of technology today, many organizations and businesses are working with some sort of network or database for information.  This is a cyber liability waiting to happen, as many hackers take advantage of this exposure.  It is comforting to hear that coverage is available for these risks with Cyber Liability Insurance!

    According to the National Underwriter Magazine, the average full cost of a data breach was between $2.4 million- $7.2 million.  Today, over 30 insurers are now writing the risk, touching $25 million, with layered coverage up to $300 million. Just three years ago, there were only 5-10 carriers for this business!  All businesses from small family owned, to huge corporations are at risk.  Any company, no matter the size is impacted if data is stolen.  Insurers predict that business for this coverage will increase 20-30% in 2012.  Here is the coverage to look for:

-Disclosure injury, including lawsuits alleging unauthorized access to or dissemination of the plaintiff’s private information.
-Privacy Notification Expenses, including the cost of credit-monitoring services for affected customers, even when the state law does not require notification.  
-Content Injury, including suite arising from intellectual property infringement, trademark infringement, and copyright infringement.
-E-Business Interruption, including first dollar extra expense

-Crisis management & reward expenses, including the cost of public relations consultants.

    Cyber Liability Insurance is the “Wild West” of insurance. Its worthwhile going through a policy with a fine toothed comb with someone who truly understands Cyber Liability. Specialists from Alta Vista Insurance Agency are very experienced in understanding the importance of adequate cyber coverage to businesses of any kind. As the risks become better understood, the market is urging that it is better to be prepared now, than wait for the first cyber attack.   Call us today and be ahead of the game!