To Combat Cyber Risk, Retailers Should Consider Cyber Insurance
Recent cyber-attacks on Target, Home Depot and, now, smaller and mid-sized merchants show that retailers are a favorite target for cyber thieves, hackers and other online criminals. Rapid business growth can lead to gaps in data security and these highly-skilled bad actors know how to exploit those weaknesses.
But, addressing the issue of cyber risk is integral to the business model of any merchant moving forward. In fact, showing a vigilance to customer data security is now an effective marketing tool: retailers who protect their customer’s personal information gain trust in the market.
Retailers need to know that cyber risk is a business issue and compliance does not always mean their systems are secure. Despite regular security and risk assessments and PCI compliance check-ups, merchants can still experience a data breach or other cyber-security incidents.
Data breaches can affect hundreds, or even thousands, of parties and can sometimes take months to detect and remediate. Considering that the average cost per record for an incident is $188, according to a 2013 Ponemon Institute report, even smaller merchants with fewer customer records can be financially devastated by a breach.
Yet many traditional liability insurance policies don’t even consider cyber risks and won’t protect a merchant from a cyber-security incident. As a result, merchants should also consider a cyber liability policy which can protect them from the high cost of these data breaches.
These policies help pay for:
- Legal expenses related to the breach
- Cyber extortion
- The notification of affected parties
- Credit monitoring services
- PR campaigns to restore consumer confidence
Sword & Shield can help you mitigate risk through our comprehensive suite of security services. We also partner with Affenix, a cyber liability insurance leader, to provide policies that help merchants transfer risk and prevent financial loss.
To see how we can help you reduce your cyber risk, request a free consultation today.
Don’t let your organization carry the full brunt of a data breach event.