In its 2013 Data Breach Investigations Report, Verizon Enterprise reports that 74 percent of data breaches to small businesses are “crimes of opportunity” – that is, crimes that occur because a hacker notices a weakness and exploits it. In addition, the report shows that nearly half (48 percent) of data breaches are enabled by in-house mistakes, often made by employees who have little or no familiarity with data security protocol.

Such breaches expose technology contractors, freelancers, and consultants who work with these companies to third-party cyber liability. To help tech professionals reduce that risk exposure, TechInsurance has issued guidelines for educating clients about how to prevent data breaches.

“Most of our clients are pretty sophisticated in terms of technology, but they may not think about advising their clients on security basics,” said Ted Devine, CEO of TechInsurance. “Often, that's because they don't realize that, even if their own security measures are top-notch, their clients' security lapses can expose them to costly cyber liability claims.” He added that, while third-party cyber liability insurance can pay for those claims, preventing them is the best way to keep premiums low and avoid the hassle of litigation.