In Carmel, cyber risk insurance is essential and is part of the cost of doing business today. IBM’s 2016 Cost of Data Breach Study revealed that businesses experienced an average loss of $4 million per data breach last year. For a small company, losses that large can mean the difference between staying in business or going under. You need to know some pertinent information when you’re shopping for coverage against data losses and breaches.
Why You Need Cyber Risk Insurance
Expenses related to cleaning up after a privacy violation or corrupted data can be staggering. The same IBM survey estimated that it costs around $158 per record for businesses to recover after an incident. That figure encompasses several acts performed in the aftermath to contain the damage, reimburse clients and deal with the possible legal ramifications:
- Announcing the incident to customers
- Reimbursing monetary losses and paying for credit monitoring
- Legal fees and regulatory fines
- Restoring, updating or replacing records
- Repair and restoration of affected websites
- Defending intellectual property rights
In addition to these, the expense to keep doing business through an interruption can also be staggering. Electronic security problems can extend to even protection systems activated to guard your premises, consistent access to your power supply and more. For entrepreneurs in Carmel, cyber risk insurance is a valuable investment. Your agent can help guide you to a plan that offers the best protection.