In an age where nearly all information is held electronically, cyber liability insurance is critical for all businesses. Insurance agencies face a high amount of risk when it comes to electronically stored information, from names and addresses to credit card information. One data breach or cyber attack can send an agency into chaos trying to retrieve the information and assure clients that they are safe after such a violation.
Cyber liability insurance is designed to protect business such as insurance agencies in case of online attacks or accidents that lead to a breach or loss of sensitive information.
Thankfully, this insurance is relatively inexpensive. On average, cyber liability insurance is around $1,501 a year. This depends on the policy, of course. You may pay $1,501 a year for $1 million in cyber liability coverage, for example. Coverages also depend on your location and claims history. If your insurance company has a history of cyber attacks or information loss, it may be more difficult to find an affordable policy.
Why is Cyber Liability Insurance Necessary?
Cyber liability insurance is crucial for insurance companies and any business that wants to protect online information. No matter how reliable your company’s firewalls are, there are increasingly aggressive viruses and hackers that can break in and steal or corrupt information.
Say you’re running business as usual for your health insurance agency. One day, you get an alert from your firewall system that there’s been a breach. Suddenly, you’ve been locked out of your account. Your other agents start losing access to their client’s information. Credit card numbers, names, numbers and health history are all being held hostage in return for ransom. This is called a ransom attack.
If you don’t have cyber liability insurance, you could be paying the hacker’s demands out of pocket, as well as trying to recover your clients’ trust on your own. Cyber liability insurance would help pay the hacker, help you recover and assist with expenses related to PR in regaining your clients’ trust.
While instances like these may seem outlandish, they happen more often than you’d expect. Cyber-attacks cost businesses millions of dollars a year, and it isn’t large businesses that take the brunt of the attack. Instead, most attacks are targeted at small businesses that likely have weaker protections. Make sure your insurance agency is protected with a comprehensive cyber liability insurance policy.
Also Read: Ways to Protect Electronically Stored Client Information