Breach Insurance

A company can do all the right things to protect themselves,

50%: percentage of restaurants who will go out of business within one year of a breach

1 in 8: number of restaurants that will suffer a breach event within the next two years

Know a few key statistics to demonstrate the need for breach insurance.
Roughly 50% of cyber breaches happen to large companies, which leaves the other 50% to small and medium-sized businesses (SMBs). Regardless of size, every company needs cyber insurance for many of the reasons listed above.
Globally, one in four companies will suffer a cyber breach incident in 2018. Those are significantly higher odds than what businesses traditionally cover in a business-owners policy (BOP).
Per record, the average cost to notify and monitor customers or employees ranges from $200-$400 (usually estimated around $225), depending on the data exposed. In 2017, the average data breach size was over 20,000 records. Know how many customers the insured has and do the math. Depending on the insured, an average cyber breach could be a business-closing event.
Case in point, 60% of SMBs hit with a data breach go out of business within six months.
The average global cost of a data breach in 2017 (including any reporting, lawsuits, notifications, and the business interruption cost of downtime) was $3,620,000 according to IBM and the Ponemon Institute.

Can you weather a storm that large?

Errors & Omissions –a third-party form, covering negligence or errors in your product or in the performance of your services (including an indirect breach in customer data)
Network Security –both a first-party and third-party form, covering unauthorized access, transmission of virus or malicious code, theft/destruction of data (GL will sometimes cover physical damage of data), cyber extortion, and business interruption
Privacy – also both a first-party and third-party form, covering data exposed by a hacker, lost device, rogue employee, and failure to destroy physical records
Media Liability – a third party form, covering infringement of intellectual property, and advertising/personal injury (the GL version of advertising injury only covers activities performed by you on your own behalf, not activities on the behalf of others)