Cyber attacks are on the rise. According to the Hiscox Cyber Readiness Report 2022, the number of U.S. businesses that experienced a cyber attack increased from 40% in 2021 to 47% in 2022. The same study reports that 40% of U.S. businesses targeted by a cyber attack (like a data breach) had to pay $25,000 or more to recover.
Like many small business owners, landlords often aren’t prepared to pay thousands of dollars in the aftermath of an attack. Adding cyber insurance to a standard building insurance policy can help protect against potential losses.
Cyber insurance covers costs incurred after private, non-public data is lost, stolen, ransomed, or accidentally exposed. Such policies can be customized to fit the unique needs of the business and property.
How Customized Cyber Insurance Can Help
Common methods of entry used by hackers to steal sensitive data include cloud servers (like Google Drive or Dropbox), business email, and employee-owned mobile devices. Landlords often use these tools and others to collect and store personal information like birth dates, credit scores, address and employment histories, payment histories, bank account information, and Social Security numbers.
If a hacker discovered your email login information or accessed a tablet or phone where you store some of this data, you could face at least three immediate costs:
- Business Interruption. After an attack, you would likely need to halt most daily business activities, which would lead to unexpected downtime and loss of productivity. According to the Insurance Information Institute, business interruption is the most common type of loss for businesses that experience a cyber attack. Cyber insurance can be customized to cover incurred losses if a data breach forced you to shut down parts of your business.
- Customer Notification. You’d need to find out what data was exposed in the attack and notify the customers and vendors who were affected, according to New York and New Jersey laws. Cyber insurance can help cover the costs of identifying whose data was affected and sending notifications.
- System Recovery. If the attack damaged your mobile device, firewall or network, you might need repairs or replacements to bring your systems back online. Many standard building insurance policies provide replacement coverage for some incidents, but it isn’t always comprehensive. A cyber insurance add-on can help replace damaged hardware so you can quickly resume operations after an attack.
Call our office at 877-576-5200 to learn about cyber insurance or request a free landlord insurance quote.