Insurance agencies handle a very large quantity of extremely personal information. Formulating policies requires a lot of information from clients. This may include social security numbers, birth dates, addresses, financial statements, credit card information and other private materials.
When a client provides you this information, they trust you to keep it safe. As a business, you have an obligation to properly guard clients’ private materials.
Like many businesses, you likely use a variety of online tools to prepare policies and store data. Computer systems are by no means secure, despite even the latest security programs. There is always a chance data breaches could expose private information to the world. The loss of private information could cause problems for your clients.
Because you deal with sensitive information on your systems, cyber liability insurance can help you fight back against data breaches.
What does cyber liability insurance cover?
Generally, cyber liability insurance protects your agency from data losses and data breaches. Some policies may also cover system failures that result in data losses.
For example, a hacker or virus may breach your systems and steal customer information. Cyber liability insurance might help you recover from such losses.
How cyber liability coverage helps
If you experience a data breach, you have to do a lot of damage control. You have a duty to secure your systems, make improvements, and also answer to affected clients.
Cyber liability coverage can help recover from these losses. It might cover:
- Emergency security intervention by experts to secure networks
- Costs of notifying clients of data breaches and compensating them for damages
- Legal costs from identity or credit theft claims
- Fines and penalties from regulators
- Limited instances of business interruption
- Certain repairs or reinforcements to networks
Remember, not every policy covers every data risk. Make sure you insure yourself against common threats that may target your agency.
Preventing cyber risks
Most people understand the best way to avoid cyber theft is to prevent it from happening in the first place. That is easier said than done. Every day, new cyber threats emerge, and even the latest security systems don’t cover every risk.
However, you can take steps to secure your networks and reduce cyber theft risks:
- Make sure your networks include functioning, current security systems. These may include encrypted networks and passwords, anti-virus programs, and spam filters.
- Monitor your employees’ network usage. Make sure they only visit safe internet forums, and use secure devices on the network.
- Back up your data regularly, and store the data on a remote drive like a cloud or external hard drive.
- If you suspect a virus, hack or phishing, immediately stop usage of your networks. Contact the proper authorities to mitigate the problem.
We’ve got you covered. If you need insurance for your agency, call U.S. E&O Brokers at (800) 460-6424 for more information. We can help you get a cyber liability policy.