According to Verizon, the most common methods of data compromise are network intrusions exploiting weak or stolen credentials (76%), hacking (52%), malware (40%), physical attacks (35%), social tactics or engineering (29%) and misuse or abuse of privileges (13%).

Cyber insurance policies can vary greatly. It is important to work with an agent that can tailor your coverage to your specific needs. Travelers is one of many carriers that offer cyber liability and data breach coverage options.

Applicable Data Privacy Standards

There are numerous regulatory frameworks and standards that businesses must consider when it comes to data privacy and security, including:

• State data breach notification laws
• HIPAA (Health Insurance Portability and Accountability Act)
• GLBA (Gramm-Leach-Bliley Act)
• PCI-DSS (Payment Card Industry Data Security Standard)
• USA Patriot Act
• Various other federal and state compliance standards

Preparation and Risk Management

Organizations bear the responsibility for protecting their data assets. Data security should be treated as a managed risk category, and cyber liability insurance represents a critical part of your plan for mitigating the expenses associated with security incidents.

Whether you are a small business or a large corporation, taking proactive steps to protect your digital assets is essential. Contact your insurance agent to discuss cyber liability and data breach coverage options that are right for your business.