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Why Your Business Needs Cyber Insurance

As thieves become more and more sophisticated, cyber attacks and ransomware attacks continue to impact businesses, the health care industry and the education sector.

If you own a business with a digital presence or maintain data on clients and employees, you could be targeted by cyber criminals.

In 2021, the average data breach in the United States cost $4.24 million – up from $3.86 million the year before, according to research by IBM.

Remote work during the pandemic made businesses even more vulnerable to threats as thieves continue to steal data while finding gaps in security, the Insurance Information Institute reports.

So how do you protect your business in advance should you fall victim to a cyber attack? If you have a Business Owners Policy (BOP) with MAPFRE, you can opt to include an endorsement providing cyber coverage.

MAPFRE’s Cyber Suite is a comprehensive cyber insurance solution designed to help businesses respond to a range of cyber incidents including threats of unauthorized intrusion into or interference with computer systems, damage to data and systems from a computer attack and cyber-related litigation.

What types of claim scenarios does Cyber Suite cover?

Cyber Suite coverage is designed to help businesses respond to cyber incidents, including breaches of personally identifying or personally sensitive information, threats of unauthorized intrusion into or interference with computer systems, damage to data and systems from a computer attack and cyber-related litigation. Paid loss after deductible varies for specific incidents, but your independent agent can provide those details and discuss what options would be best suited to your business needs. Types of coverages include:

  • Data Compromise Response Expenses
  • Computer Attack
  • Cyber Extortion
  • Data Compromise Liability
  • Network Security Liability
  • Electronic Media Liability
  • Identity Recovery
  • Misdirected Payment Fraud
  • Computer Fraud

Why do businesses need Cyber Coverage?

Any business that maintains data on their clients and employees has the responsibility to safeguard the data. Cyber attacks can not only impact a business’s finances and operations, but can also damage its reputation and the wellbeing of its staff. Specific reasons why Cyber Coverage is necessary are:

  • Typical General Liability policies do not cover data breaches and cyber attacks
  • Most attacks are against small and mid-sized companies that lack the legal and public relations resources to respond to a breach
  • Every state has laws requiring business owners to notify affected persons of stolen or lost data
  • A business that suffers a data breach needs to protect its own reputation and credibility
  • Businesses may suffer severe financial burdens and losses of
    income due to cyber attacks

When you choose Cyber Suite with MAPFRE, you will not only have peace of mind, but you will also have access to other benefits like eRiskHub®, a risk management portal that helps business owners prepare and respond effectively to data breaches. The risk management portal includes access to tech support and other digital security services to assist with your cyber coverage needs.

If you still have questions about Cyber Suite, your independent agent can answer any questions you have and discuss what options are best for your unique business needs. Don’t forget to make sure you also have the right business insurance coverage by getting a fast, free quote today from MAPFRE!

Please Note:This content is not intended to describe any specific coverage offered by MAPFRE Insurance. No coverage is provided, bound or guaranteed by this article. Available coverages, credits and discounts vary from state to state and are subject to eligibility criteria and policy terms/conditions, which will control in the event of conflict between this article and your insurance policy. For information about your policy, please review your individual policy contract and speak with your insurance representative.

MAPFRE Insurance® is a brand and service mark of MAPFRE U.S.A. Corp. and its affiliates, American Commerce Insurance CompanySM (Cal. COA 4928-8); Citation Insurance CompanySM; The Commerce Insurance CompanySM; Commerce West Insurance CompanySM (Cal. COA 1372-2); and MAPFRE Insurance CompanySM (Cal. COA 3039-5). Not all products available in all states.

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