UPS Capital, a subsidiary of UPS, has launched a cyber liability product for small and mid-sized businesses. The product includes coverage for security-breach response, cyber extortion, income and digital-asset restoration. It also covers third-party consequences like litigation, fines and investigation.
Cyber coverage is becoming more important with each passing month. According to a recent study by Hiscox, 68% of small businesses and 72% of large businesses have suffered a cyberattack in the last 12 months. One cyberattack can cost a mid-sized business between $84,000 and $148,000, according to UPS Capital. And when large-scale attacks on industry giants are factored in, the average price of a data breach is about $4 million.
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“As companies become increasingly digital, there are more opportunities for attacks,” said UPS Capital President Mark Robinson. “And nearly two-thirds of cyberattacks are perpetrated on small and medium-sized businesses, putting them at the forefront of the activity.”
The new cyber liability product offered by UPS Capital Insurance Agency provides broad coverage, and full policy limits including both first- and third-party liability coverage – unlike many business owners’ insurance policies which offer only third-party coverage. Ninety percent of cyber claims are first-party liability.
UPS Capital’s first-party coverage includes costs related to:
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- Forensic investigation
- Business interruption
- Cyber extortion
- Breach notification mailings
- Call center support
- Credit monitoring
- Public relations
- Regulatory defense