Think your business is TOO SMALL for a data breach … think again.

According to latest statistics, approximately 70% of all data breaches are to small businesses and a staggering 95% of Credt Card Data Thefts are to small businesses!

IF your business uses Smartphones, Laptops, Tablets, have a Website, store client’s personal information, or process credit cards, you have DATA BREACH exposures and need Cyber Insurance.

Cyber insurance is an insurance product used to protect businesses from Internet-Based risks. Unfortunately, most Business Owner’s Policies were written before the age of the Internet and did not contemplate covering exposures and claims arising out of the use of the internet. Many companies now offer limited Cyber Insurance/Data Breach coverage as an optional endorsement or “add on” to their Business Owners policies. In most circumstances, a business should consider purchasing a “stand-alone” Cyber” policy providing much broader protection for the risks associated with Internet-Based activities.



When your employees or customer’s information is compromised, you may be legally required to take action which can result in significant expenses. If your network or data is impacted, it can cause interruption of your business resulting in loss of profits or extra expenses.

Examples of coverage(s) for first party expenses are:

LEGAL EXPENSES – A licensed attorney would need to evaluate the event to determine what actions may be required to comply with applicable regulations.

COMPUTER FORENSICS – a forensic investigation determines if, how, and when attackers entered your network and whether or not any sensitive information has been compromised. The results of the investigation will determine what action(s), if any, are needed to protect employees or customers.

NOTIFICATION – assistance in notifying customers or clients affected by the event to comply with regulatory requirements.

ID MONITORING – both customers and regulators require on-going monitoring when personal information has been compromised to protect your business reputation and to mitigate potential third-party liability.

EXTORTION PAYMENTS – an increasing number of cyber events resulting from ransomware infections or threats can cause a network outage. Cyber extortion coverage can help respond to the demand for payment to protect your business.

DATA RESTORATION – if business data is damaged or lost because of a network intrusion, you may need to incur costs to restore the damaged or lost data.

BUSINESS INTERRUPTION – pays for income loss or extra expenses caused by a network outage from network intrusion.

CYBER FRAUDULENT TRANSFER – when a hacker compromises your information and fraudently transfers your funds and/or your client’s funds, which cannot be recovered.


After a cyber attack, you are required to take steps to protect both your business and your customers, however, even when you do everything right, you may face lawsuits from your clients or customers affected. In addition, a regulator may take steps to investigate the event, requiring additional response time and costs associated with your attack. The costs associated with regulatory compliance as well as the costs associated with settling cyber-related lawsuits can be significant.

Examples of coverage for third party expenses are:

PRIVACY & SECURITY – RELATED LITIGATION – events can lead to lawsuits against your business filed by your customers and/or employees. This coverage helps you to defend against the lawsuits and appropriately resolve them.

REGULATORY FINES – State and Federal regulators have become increasingly active in the enforcement of privacy & security requirements. These investigations can result in significant fines. Guidance in responding to regulator inquiries may be provided to protect your rights during regulatory investigations.

PAYMENT CARD LOSSES – Merchants that have a security breach can be assessed fines, penalties, and other costs by the credit card brands. These costs may be significant depending on the number of card numbers compromised, and whether or not your business was compliant with PCI security requirements.

IN SUMMARY – in this age of the Internet of Things most businesses have significant exposures to risks not covered by their Business Owners policies. Cyber coverage can be purchased, either as a “rider” to an existing policy, or for broader protection, through a “stand-alone” Cyber policy.

Interested in securing a QUOTATION for a Cyber Liability policy? We can secure a Quote indication within 24-48 hours if you provide us with the following five (5) pieces of information:

  1. Name of your Business
  2. Business Address
  3. Description of your Operations
  4. Your Website Address
  5. Your Annual Revenue