I'm sure you have heard about a Data Breach in the news at some point in time. Usually the media just tells about the large companies that have been impacted. For example, Experian and T-Mobile have made the news recently. Since we only hear about the large companies being attacked, I'm sure most small businesses think it cannot happen to them or the impact isn't that big. The reality is you don't have to be a Home Depot, T-Mobile or Target to be a victim of a Data Breach as most cyber attacks are small to medium sized businesses. According to an industry expert, 62% of all Cyber attacks are on small to medium sized businesses. Now to get back to the question, what is a Data Breach? It is private data that is viewed, used, held for ransom, or stolen by an unauthorized person. Who would have thought 10 years ago we would be worried about someone taking our data and holding it ransom.

Let's review some facts:
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• Data breaches and cyber attacks have increased another 23 percent in the last year​
• 25 percent of all breaches have occurred in organizations of 2,500 or fewer employees
• The average cost of a data breach has risen to $6.53 million (this includes costs related to loss)
• Costs associated with that breach average $217 per compromised record. ​

As you can imagine, it's a little more complex than a phone call to your IT guy or gal. The most important thing at stake for a small to medium sized business when it comes to a data breach is not only their business, but their reputation. These large corporations have huge public relations firms to come to their aide, and when it comes to defense from a lawyer, money is no object. Worst case scenario their stock might drop a few points. But again, the PR firm is going to make a statement and put everyone at ease.  Another thing these large companies have is a trusted brand, which can go a long way when an attack occurs. A small to medium sized business probably does not have the luxury of any of these. One small breach could cause their livelihood to crumble and never recover. Fortunately, there are options. The first option is to do nothing and have the mentality that it won't happen to you. The second option is a solution. 

When it comes to Business Insurance, business owners need to be thinking about more than just General Liability, Umbrella, and Property Insurance to protect their business.  Since we live in this digital age now, Data Breach Coverage should be considered by all business owners. The amount of coverage is going to depend on your level risk and your business. Here's some basic coverage information you should look for when it comes to Data Breach:

• Breach notification expense
• Credit card monitoring services
• Cost to retain a public relations consultant
• Extortion expense
• Access to a Breach Coach
• Worldwide coverage

These are just a few things to look for when considering a Cyber Liability policy. Here's a fantastic checklist to review. Bottom line, a stolen laptop, smart phone, a stolen record or a virus can have an enormous impact on a business. There are many options when looking at Data Breach coverage for your business. It can be very confusing and overwhelming, if I can help, please let me know. 

Jason Matison
Insurance Agent
​Austin, TX

October is Cyber Awareness Month so it's only fitting we get you information on basic prevention. We don't want to overwhelm people, so we're going to keep this simple. Your password can be your first line of defense against attack. Below are some password tips that you should follow. 

• Make sure your passwords are cryptic. An example would be 2_DerWiL9. It's important your password is something you can remember, though. 
• Change your password. Sometimes websites make it a requirement to update your password every year or so. If they do not, it's generally a good idea to do anyway.

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• Do not use the same password for all your accounts. Of course it is easier, but that also means it's going to be much easier to hack all your accounts once one is compromised. 
• Never share your passwords or write them down. 

This is just one basic tip. Take the time today to update your passwords and learn more about Cyber Liability. For more information on Cyber Liability and Data Breach, please free to contact me. I am always here to help. 

When it comes to Business Insurance, the Declarations Page or Common Policy Declarations of your insurance policy will reflect coverage and deductible information. It's usually located near the front of your policy. Oftentimes, people will tell me it's the only information in their insurance policy that makes sense. 

Take the time to review your Declarations Page at least once a year. Renewal time is usually the best time to do this. Your business changes and so should your policy limits. The picture to left is an example of what a Declarations Page from a Hartford Spectrum Policy looks like. Yours should be somewhat similar. 

If you cannot locate your Declarations Page, also called a Dec Page, talk to your agent. They should be able to locate it very easily. If you have any questions, or need assistance with your Business Insurance policy, please feel free to contact me. 

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