AXIS INSURANCE SERVICES, LLC: Why You Need Privacy & Network Security Liability Coverage
All types and size companies are targets of cyber attacks today. Whether you are a large accounting firm or healthcare provider, a midsize law firm or a local commercial real estate agency, cyber criminals don’t discriminate. It may be the behemoth companies that make headline news following a hack attack, but statistics show that small businesses have become a big target for cyber criminals. In 2015, for example, phishing campaigns – emails designed to hijack an entire company’s financial information and gain access to funds and personal information – targeted small businesses 43% of the time, up 9% over 2014 and 18% since 2011.
Without the right insurance protection in place from Axis Insurance Services, LLC, the expenses that come with a data breach can be significant for a company to absorb out of pocket. These expenses include: the cost of forensic accountants/IT professionals to identify the scope of the problem, and can easily run between $50,000 to $100,00 for the simplest breach; the cost of notification to all parties affected which can include certified mail, and can reach up to $200 per record; the cost of personnel to field phone calls and letters; the cost of providing credit reporting services to those affected; and the marketing costs associated with defusing the situation and repairing a company’s image. It’s important to note that the cost of an uninsured loss is twice an insured loss.