As an insurance company, you have a lot of private client information like social security numbers and credit card information. In today's world, much of this information is probably stored on computers.
Storing information on a computer means that it is generally secure, but not foolproof. Hackers can break into even the most secure storage networks. This is a data breach, and it can be serious.
Cyber liability insurance usually helps with costs that your business might suffer following a breach. It is an important tool to have as you work to protect your agency’s integrity.
What to do in Case of a Data Breach
If a data breach hits your agency, costs can rise when trying to stabilize the situation. You should immediately take steps to rectify a data breach. Both the business and your clients are at risk. If a data breach occurs:
- Try to identify the missing data. See if the hack affected certain or all systems and drives.
- Immediately notify the insurance companies for which you write policies. Some of them have special procedures for data breaches. Do this before your notify clients.
- Know your state’s data laws, and follow them for more comprehensive guidelines. Most states require businesses to notify state regulators and consumers in the event of a data breach. The state may also be able to provide you with information on fixing the problem.
- Secure a trusted vendor to isolate, stop and secure the threat. There are many security vendors that offer services to diagnose and fix cyber problems.
- Have your cyber security provider try to recover any lost data.
- Know what information you must, by law, give clients to keep them safe.
- Invest in services that will help ensure clients’ future safety, like credit monitoring services.
- Before you notify affected parties, ensure that you have a security fix in the works. Have definite answers to concerns customers express.
- After you notify affected parties, have dedicated, honest and consistent answers for them. Prepare to give them resources to ensure their own protection.
- Follow all legal requests for information, such as those from customers and regulatory bodies.
- Keep customers notified of security fixes, and ensure them that you are there to help.
Many of the steps involved in cleaning up from a cyber breach come with costs. A good cyber liability policy will likely help cover some of the costs of keeping data safe in the future.
If you have questions about cyber liability policies, call U.S. E&O Brokers at (800) 460-6424.