The payments and securities landscapes continue to evolve and every day cybercriminals continue to find new ways to breach security measures. Avanti Markets chose to proactively respond by adding an additional layer of protection for its customers through a comprehensive cyber liability insurance policy that helps to cover and protect incidents of a data or security breach at the micro markets.
So, ultimately why is this important?
According to IBM’s 2016 Cost of a Data Breach survey, the average cost of a single data breach is $4 million. Whether sensitive information is compromised by hackers, technological failure or human error, the consequences are often more than enough to significantly impact a business. One way businesses are mitigating this growing risk is with cyber liability insurance.
Cyber risk insurance, also called cyber liability insurance, does not prevent cyber-crime or data loss from happening, however, it does help businesses recover from losses they incur if they fall victim to a data breach. Typically, cyber liability insurance will cover losses to the business, notification of customers and legal expenses related to lawsuits and/or data extortion.
It is important to understand how a cyber liability insurance policy extends to first and third parties. First party coverage protects you if your system or database is attacked directly. Third party coverage will cover your losses if your business falls victim to a cyber-attack through a third party, such as a vendor or customer you have interacted with. It is important that your policy extends to both scenarios. Some of the largest cyber-attacks have been third party attacks.
The bottom line: it’s better to be protected in these situations and this cyber liability insurance policy will seek to do this and help provide peace of mind.
Want to learn more about Avanti Markets’ cyber liability insurance policy investment? Read the press release.