Between January of 2005 and June of 2020, 41 data breaches were identified in the state of Mississippi. These breaches resulted in more than 370,000 records lost or stolen and cost the businesses that were targeted more than $10 million in liability costs.
Data breaches and cybercrimes are on the rise, and every business that uses computers is at risk. Even if your company is safeguarded by firewalls and other security measures, cybercriminals are constantly developing new ways to access protected information. That is why cyber liability insurance is so important.
Talk to an independent insurance agent in Mississippi to learn how a cyber liability insurance policy can help your business manage the financial ramifications if criminals access its computer system. Your insurance agent can help you find a reliable, yet competitively priced, policy.
What Is Cyber Liability Insurance?
Cyber liability insurance is a relatively new commercial liability insurance product that was designed to protect businesses from financial losses and liabilities related to cyberattacks and data breaches.
Policies tend to differ a bit from one provider to the next. Local independent agents can help you find a cyber liability insurance policy that is suitable for your Mississippi business.
How Much Does Cyber Liability Insurance Cost in Mississippi?
On average, a cyber liability insurance policy that provides $1 million worth of coverage with a $10,000 deductible costs about $1,500 a year. That is a small price to pay when you consider that the average cost per data breach incident in the US is about $119,000.
Here are some factors that can influence how much a cyber liability insurance policy will cost for your company.
- The type of business you own
- Your company’s size and average annual revenues
- The amount of data your company stores and its level of sensitivity
- The cyber security measures your company has in place to protect against data theft
- The amount of coverage you are purchasing
- Your company’s claims history
Every insurance company has its own way of calculating rates, so it pays to compare quotes from a few competing providers before choosing a policy. Independent insurance agents in Mississippi can save you time and money by doing the comparison-shopping on your behalf.
Who in Mississippi Needs Cyber Liability Insurance?
From large, high-revenue companies, like law firms and banks, to small businesses run out of people’s homes, any business that stores third-party personal or financial data electronically can benefit from having a cyber liability insurance policy.
Some business owners may feel that their companies are too small to attract the attention of cybercriminals. However, a study conducted by security experts found that cyberattacks are expected to cost small businesses more than $5 trillion in losses over the next five years.
No matter what type of business you own, or how large or small it is, if you store other people’s sensitive data electronically, you should strongly consider protecting your company with a cyber liability insurance policy.
What Does Cyber Liability Insurance Cover?
While there may be some variations in what policies from different insurance companies will cover, you can expect most cyber liability policies to pay for the following.
- Fees for legal defense representation
- Costs associated with properly notifying affected individuals of the breach
- Restitution to affected individuals, including the cost of credit monitoring and restoration services
- System recovery costs
- Regulatory fines and penalties
- Reputation recovery services for your company
- Cyber extortion costs including negotiation fees and paying ransomware demands, if necessary
- Business interruption coverage if your computer system is rendered unusable for a substantial amount of time
A local independent agent can help you find a comprehensive, yet reasonably priced, policy and can ensure that you fully understand the scope of coverage it provides.
What Does Cyber Liability Insurance Not Cover?
As with any kind of insurance policy, cyber liability insurance has its limitations. For instance, you should expect your policy to exclude coverage for the following issues.
- Lower potential future profits
- Devaluation of your company’s intellectual property
- Funds spent improving or upgrading your technology systems or security software following the breach
When you work with an independent agent, you will have access to an insurance professional who can explain all the details of what the policies you are considering will and will not cover.
Examples of Cyber Liability Claims in Mississippi
Stories of cyberattacks in Mississippi are frequently in the news. For instance, in October of 2020, the Yazoo County School District voted to pay $300,000 to recover encrypted files after falling victim to a ransomware attack.
This was not the only school district in the state to be targeted by cybercriminals. In November of 2019, Lincoln county schools were also impacted by a ransomware attack.
There are several different methods criminals can use to access your business’s computer system. These include the following.
- Hacking: This is when cybercriminals access your data after finding a way to break through your company’s firewall and other security features.
- Skimmers: This is when criminals attach what are known as skimmers to credit card readers. This enables them to retrieve your customers’ credit card data and PIN numbers.
- Phishing: This is when cybercriminals use social engineering tactics to trick people into providing information that enables them to access passwords and/or secured computer files.
Using the methods above, criminals can attack in different ways.
- Malware attacks: This is when cybercriminals install malicious code in your company computer system. This software can open a back door to your company’s files so that they are easily accessible.
- Ransomware attacks: This is when cybercriminals encrypt some or all of your business’s important computer files and/or systems and require a ransom to be paid for you to get the encryption code needed to restore your data.
Every business that uses computers is vulnerable to cyberattacks and data breaches. A good cyber liability insurance policy can help your company deal with the aftermath if this crime happens to you.
How to Find the Best Cyber Liability Insurance Coverage in Mississippi
If you are shopping for a cyber liability insurance policy for your business in Mississippi, a local independent insurance agent can help. These agents don’t work for a particular insurance provider, so they are free to shop around to find you a reliable policy at a competitive price.
There are more than 200 independent agents in Mississippi. Get more information about cyber liability insurance by setting up an obligation-fee consultation with an independent insurance agent near you.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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