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image of agents sitting at meeting tableMany insurance companies keep comprehensive data files on most of their clients. The sheer volume of customer data you deal with makes file management tantamount to a successful business. If you don’t properly manage your data, it might lead to policy problems for clients.

However, there’s another side to data management that involves its security. Whenever an insurance company uses data networks, it opens itself to the potential for data losses or cybersecurity breaches. Such actions could harm the business and place their customers’ privacy at risk. Therefore, the right precautions and insurance can protect the agency’s data.

Why Your Data is At Risk

Whenever an insurance agent places client and policy data into a computer system, that information is no longer exclusively private or secure.

Cyber thieves look for ways to break into data systems and access private information. Furthermore, all networks may face failures at some point, which could lead to data losses. Such losses could lead to problems for the agency.

Think about the data your agency may store on a computer or network:

  • Private customer information like names, addresses and social security numbers
  • All policy history for clients
  • Payment and bank account information for clients

Should you lose this data, it may cause the client unanticipated problems.

Cyber Liability Insurance

Should a data loss occur, the insurance agency likely has to take immediate steps to protect their security. Cyber liability insurance can specifically protect the agency when a cyber risk threatens.

Coverage might help the company provide services for customers who need identity and credit monitoring. It might also help the company replace systems or install new security mechanisms. A policy might help the insurance company avoid financial losses because of the cyber damage.

Further Protecting Your Data

Even with cyber liability insurance, there are other ways to protect your data. Doing so might help you avoid having to make an insurance claim in the first place.

  • Back up your data regularly. It is often best to use multiple sources to secure data.
  • Use encryption and secure data networks
  • Follow the security protocol required by insurance carriers or state agencies
  • Require your staff to follow comprehensive security steps when accessing and reviewing policy and customer information
  • Consider investing in third-party cybermonitoring services to help the agency protect its networks.

If you have reason to believe that a cyber risk has occurred, immediately notify the appropriate authorities. These may include your state insurance board and impacted customers. Gather the appropriate information before contacting your cyber liability insurance provider, but do not fail to contact them expediently.

U.S. E&O Brokers has your coverage needs in mind. Call us at (800) 460-6424 for a fast, free cyber liability insurance quote.

Posted 6:13 PM

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