Streetsmart insurance Blog
In 2016, Yahoo! announced that it had been hacked multiple times over the past five years. The data breach that occurred in 2013 had compromised more than 1 billion user accounts, making it the largest recorded data breach in history. At the time of the announcement, Verizon was in the process of negotiating a deal to buy Yahoo!; the public outcry that followed threatened the financial stability of the tech giant and put Verizon’s plans on hold.
Unfortunately, hackers can target small businesses as easily as they can target large companies. In 2014, Nationwide and Hartford Steam Boiler released a report that stated that 55 percent of small businesses in the U.S. have experienced a data breach and 53 percent have experienced multiple data breaches.
If you are worried about the impact that data breaches could have on your small business, you should purchase cyber insurance. Cyber insurance can protect your business from any liability or property losses that arise from your day-to-day electronic activities. If you become the victim of a data breach, your cyber insurance policy will cover the cost of notifying customers and credit reporting agencies, monitoring your credit, and paying for your legal defense.
For example, imagine that Cindy Parker owned Parker’s Boutique. Cindy owned a brick and mortar shop in New Jersey and managed an online store in her spare time. One day, a data breach compromised all of her customers’ information. Cindy was worried that her customers would sue her for negligence, and she called her insurance company to see what she could do.
Her insurance agent reminded her that she had cyber insurance, and they worked together to file a claim. Cindy’s insurance company notified her customers and provided credit monitoring services for each of the victims. Cindy’s customers did not file a lawsuit, and Cindy was able to get back to work without worrying about her business.
Street Smart Insurance is committed to providing affordable coverage. Whether you are looking for your first business insurance policy or you are shopping for a better price, our agents are ready to help. Call us at 732-462-8343 for a free quote!