Editor’s Note: Will the cybersecurity regulatory system created by the forthcoming Executive Order spur the market for cyber risk insurance as awareness of the business threats posed by thbeer-threats increases? Or will the Executive Order limit business interest in paying cyber insurance premiums in addition to the costs of complying with the Order? One issue that will shape company decisions will be the extent to which compliance with the Order can be used as a defense in cyber-related litigation.
From: Insurance Journal
Travelers Adds Cyber Protection Tailored to Small Businesses
Small businesses may not think they are at risk for cybercrime, but almost 72 percent of the 855 data breaches worldwide analyzed by Verizon’s forensic analysis unit were at companies with 100 employees or less*. However, a questionnaire by Travelers found that only 29 percent of small business owners surveyed were very confident that they had adequate coverage to protect their business against cyber liability**. Travelers is introducing CyberFirst Essentials – Small Business to help small businesses protect against this growing risk and to meet the need for expanded coverage.
CyberFirst Essentials – Small Business offers insurance coverage to protect against some of the most common information security breaches including:
- Online hacking and data theft of confidential information such as credit card number, Social Security number, medical data, etc.
- Accidental loss or sharing of personally-identifiable information regardless of whether that information was from electronic data or from physical paper records.
CyberFirst Essentials- Small Business is part of a Travelers MasterPac business owners policy and can include coverage for the costs associated with breach disclosure, credit monitoring services, resulting litigation and more. Policies start at $120 with limits ranging from $25,000 to $250,000. This coverage is available through Travelers’ network of independent insurance agents.
In addition to this new coverage for small businesses, Travelers offers cyber coverage tailored to its medium- and large-sized business customers including CyberFirst for technology and public entity customers and CyberRisk, offered as a stand alone or through management liability coverage packages for public and private companies, nonprofit organizations and financial institutions.
*Verizon 2012 Data Breach Investigation Report
**The questionnaire was conducted on-site at the U.S. Chamber of Commerce’s annual America’s Small Business Summit held in Washington, D.C., from May 21-23, 2012, and is intended to represent the sentiments of approximately 300 small business owner attendees who participated in an in-person interview over three days
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