PayPal’s recently acquired company TIO Networks just revealed that up to 1.6 million customers have had their information stolen in a recent data breach. PayPal acquired TIO Networks in July 2017 in a deal worth $238 million, and now as a result, they are responsible for the damages due to the cyber attack.
As a business appraiser, this should make you stop and think for a moment. When you test for the value of a business, do you factor its cyber security risk when calculating that value?
Let’s say you appraise a business without taking its cyber security into consideration, a company buys it, and subsequently the acquired business has a data breach – much like what just happened to PayPal. Let’s further suppose this data breach results in the merged organization’s reputation being damaged, and the true value of the acquired company being revealed to be much less than your original appraisal. Would you be vulnerable? You bet. Fortunately, Cyber Liability Insurance has Errors and Omissions protection.
Remember, I am here to answer any questions you may have about your Cyber Liability coverage, and I’ll be happy to work with you to determine if the coverage you have is adequate or if there is a coverage gap and risk to your firm. Unfortunately, 60% of small businesses close their doors within 6 months following a cyber attack. Don’t let your business be part of the statistics when there is an easy way to protect what you worked so hard to build.