Computer hackers have recently targeted some of the biggest retail establishments in the U.S.
JPMorgan revealed that 76 million households and seven million small businesses were affected by a hacker’s data breach. Home Depot confirmed a security breach that compromised 56 million payment cards.
In December 2013, Target was hacked, costing the company more than $400 million. Other businesses that have been attacked include Neiman Marcus, UPS, Goodwill, P.F. Chang’s, Sally’s Beauty Supply, Michaels, Dairy Queen and Kmart.
While computer hackers target the big corporations worldwide, don’t think for a minute that your small business is safe from a cyber attack. You might think, “Why would someone hack into my business?”
Why not? Like many small businesses, you probably take credit and debit cards for payments for your goods or services. You likewise use a credit card to purchase equipment and supplies for your business.
Just think for a moment if a hacker attacks your company. That hacker can access your customers’ names and contact information in addition to your employees’ Social Security numbers. That hacker can disable your Web site so you can’t take orders or collect payments.
You can protect yourself from the risk of a cyber attack and the ensuing costs of recovering from an attack with Cyber Liability Insurance.
Many cyber liability policies offer “first party” coverage and will pay for things like Business Interruption, the cost of notifying customers of a data breach, and the expense of hiring a public relations firm to repair your business’s damaged reputation. Business Interruption coverage can be especially important for a small business, if you only have one line of business.
Cyber Liability Insurance can also include Network Security Liability, Multimedia/Media Liability Coverage (Web site and Intellectual Property Rights Infringements), and legal costs and regulatory fines for a data breach.
It’s important to know that Pennsylvania law requires you to notify all your clients of a computer hack. Some smaller businesses think they can keep this quiet. However, doing so violates the law and just adds to the problem.
There’s lots of variation among policies, so it’s best to pick up the telephone and call Greg Magnus at E. R. Munro and Company at 877-376-8676, Ext. 157. He’ll be able to explain to you what’s the best Cyber Liability coverage for your particular business.
