In today's digital landscape, cyber threats are escalating at an alarming rate. In the third quarter of 2024, organizations experienced an average of 1,876 cyberattacks per week—a staggering 75% increase compared to the same period in 2023.

Small businesses are particularly vulnerable, often lacking the robust security infrastructure of larger corporations.

Understanding Cyber Liability Insurance

Cyber liability insurance is designed to protect businesses from the financial fallout of cyber incidents. For small businesses, this coverage can be crucial, offering assistance with:

• Data Breach Response: Covering costs related to notifying affected individuals, providing credit monitoring services, and managing public relations to mitigate reputational damage.

• Legal Expenses: Assisting with attorney fees, court costs, and potential settlements arising from data breaches or regulatory violations.

• System Repair and Data Recovery: Funding the restoration of compromised systems and the retrieval of lost data.

• Business Interruption: Compensating for lost income during periods when operations are halted due to cyberattacks.

By investing in cyber liability insurance, small businesses can transfer the financial risks associated with cyber threats to a trusted insurance carrier, ensuring continuity and stability.

Real-World Examples of Cyber Incidents

The increasing frequency of cyberattacks has affected businesses across various sectors:

• Krispy Kreme: In November 2024, the popular doughnut chain experienced a cyberattack that disrupted its IT systems, leading to business interruptions and affecting online orders in certain U.S. regions.

• Halliburton: In mid-2024, the oilfield services giant reported unauthorized access to its systems, prompting an internal investigation and system shutdowns to protect data integrity.

• Transport for London (TfL): In September 2024, a cyberattack compromised the personal data of approximately 5,000 customers, leading to the arrest of a teenager in connection with the breach.

These incidents underscore the pervasive nature of cyber threats and the importance of proactive measures, including comprehensive insurance coverage, to safeguard business operations.

Managing risk is a critical part of running a successful business. We’re here to help ensure your company complies with state regulations and arrange coverage to transfer potential risks from your operations to a trusted insurance carrier.

If your business assets or exposures require specialized coverage, consider a complimentary Commercial Insurance Review with UWIB Risk. This thorough assessment can identify gaps in your current policies and provide tailored solutions to protect your business effectively.

Take the first step towards comprehensive protection. Schedule your cost-free Commercial Insurance Review today!