UPS Capital Offers Cyber Liability Insurance for Small Businesses

UPS Capital launched a new cyber liability insurance solution for small and mid-size businesses. The insurance includes first-party coverage for security breach response, cyber extortion, income and digital asset restoration. It also offers third-party coverage for consequences that may result from a cyberattack such as litigation, investigation and fines.

Announcement follows:

UPS Capital, a subsidiary of UPS, today announced a new cyber liability insurance solution for small and mid-size businesses. The insurance includes first-party coverage for security breach response, cyber extortion, income and digital asset restoration. The solution also offers third-party coverage for consequences that may result from a cyberattack such as litigation, investigation and fines.

“Cyberattacks and the need for cyber liability insurance are a growing concern for our customers,” said Mark Robinson, President of UPS Capital. “Many small and mid-sized companies are just not prepared for the type of loss a cyber-incident can cause. UPS Capital now offers a comprehensive policy to protect small and mid-size businesses against the more complicated and expensive consequences of a cybercrime.”

The Impact of Cybercrime
According to the 2017 Hiscox Credit Readiness Report, 68% of small businesses and 72% of large firms experienced a cyberattack in the last 12 months. “As companies become increasingly digital, there are more opportunities for attacks” said Robinson. “And, nearly two-thirds of cyberattacks are perpetrated on small and medium-sized businesses2 putting them in the forefront of the activity.”

The average price of a data breach now stands at about $4 million4. Just one cyberattack can cost a mid-sized business between $84,000 and $148,0003. Some firms are hit even harder. The impact can be devastating to businesses as operations may come to a halt while the breach is assessed.

Coverage
UPS Capital Insurance Agency, Inc., a leader in mitigating supply chain exposure, now brokers comprehensive cyber liability insurance policies that can help businesses mitigate their financial risks. Policies provide broad coverage, and full policy limits include both first- and third-party liability coverage, a big advantage over business owner’s insurance policies, which typically only offer third-party coverage. Unfortunately, 90% of claims are first-party liability.5 First party coverage includes costs related to:

Forensics investigation
Business interruption protection
Paying cyber extortionist
Breach notification mailings
Call center support
Credit monitoring
Public relations
Regulatory defense

For more details about the UPS Capital cyber liability solution, visit the UPS Capital website.

SOURCE: UPS Press Release

Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.