Independent Insurance Agents of Kentucky has partnered with Arlington/Roe & Co., Inc. to offer our members an exclusive program to help protect their agencies from information security breaches. This program is a holistic risk management process that will help train your staff on privacy compliance in addition to handling data breach notification and 3rd party suits. This program offers the following benefits:
What is Cyber Liability Insurance?
Cyber liability insurance is an insurance coverage package that provides businesses protection from cyber security issues like data breaches involving sensitive customer information. In an ever-evolving digital world, cyber breaches have become all too common. Any business that digitally stores data is at risk of a cyber-attack. In fact, 55% of small businesses have experienced a data breach.
For an independent insurance agent, this can be a scary possibility. You have grown your business by establishing trust between yourself and your clients and a data breach could seriously harm your reputation. While cyber liability insurance can't entirely prevent the risk of a data breach, it can help deal with the aftermath. As a Big “I" Kentucky member, we can teach your employees how to effectively navigate a data breach and help them learn best practices for privacy compliance.
What Does Cyber Liability Insurance Cover?
Cyber liability insurance will typically cover the costs associated with a data breach. This includes the cost of hiring legal representation and recovering the stolen data. Depending on whether the attack happened to your business or another business' data that you manage will impact the type of coverage you need.
First-Party Coverage
First-party cyber liability insurance, also known as data breach insurance, covers costs related to a data breach or cyberattack on your business.
This generally includes:
Cyber Ransom Payments: if a hacker is holding your information or data hostage, cyber liability insurance will help with payments to meet the demands of the attacker.
Breach Response Costs: This coverage will help cover the costs associated with notifying affected clients, hiring a digital forensic investigator, consumer credit and fraud monitoring services, as well as PCI compliance fines.
Third-Party Coverage
Third-party coverage protects companies that fail to protect their client from a data breach or cyberattack. This is generally recommended for businesses that make software recommendations to clients or are responsible for their network security. Third-party cyber liability insurance will typically cover the costs associated with a lawsuit from one's client like legal defense costs, settlements, and court-ordered judgments.
Is Cyber Liability Insurance Worth It?
If you store any customer data or store information online, you should absolutely have cyber liability insurance. As previously mentioned, over half of small businesses have experienced some kind of data breach. Unfortunately, 60% of small businesses fail to recover after a cyberattack. Making sure your independent insurance agency has the proper coverage can go a long way in recovering from a data breach.
As a member of Big “I" Kentucky, we will set you up with the best cyber liability insurance policy, help train your staff to navigate a cyberattack, and provide additional resources. Not a Big “I" Kentucky member? Sign up today or contact us with any questions!
