Cyber Liability Insurance
for Insurance Agents and Agencies

Insurance agents couldn't do their job without handling sensitive client information. To recommend the best products and options to your clients, you must take note of business and personal data, financial information, credit card numbers, and more — everything a cyber criminal would need to steal an identity or commit fraud.

When thinking about liability exposures, it's not uncommon to overlook the need for Cyber Liability coverage. But the truth is this: cyber attacks and data breaches are growing problems in the small business community. It's easy for skilled hackers and other cyber criminals to gain access to a business's network — even yours.

That's why insurance providers developed Cyber Liability Insurance. This policy protects insurance agents from the high cost of cyber attacks and data breaches. It's typically available either as a standalone policy or as part of a Business Owner's Policy. Read on to learn more.

What Is a Data Breach?

Insurance Agents: What Is a Data Breach?

A data breach is a general term for when secure information — like your client's personal or business data — is leaked into an unsecure environment that cannot be trusted. This can happen in a variety of ways:

  • A computer or storage device is lost or stolen.
  • A server error deletes or destroys information.
  • A hacker gains access to your computer network.
  • A cyber criminal phishes your business's website.

Hackers and other cyber criminals can "attack" your network in an attempt to steal money, information, indemnities, and anything else they can find to pilfer. This is often referred to as a "cyber attack."

If your insurance business should fall victim to cyber attack or any other kind of data breach, you are legally obligated to notify everyone whose information could have been compromised.

This means, of course, that cyber attacks often tarnish a business's reputation — which can affect future business for far longer than a run-of-the-mill money theft. You may also have to deal with legal expenses — not to mention the amount of time it will take to investigate the breach and make things right.

It's estimated that the average cost of a data breach was $188 per record in 2012. Multiply that by the number of clients you work with, and you'll see how Cyber Liability Insurance can be a wise investment.

How Does Cyber Liability Insurance Protect Insurance Agents?

How Does Cyber Liability Insurance Protect Insurance Agents?

One of the reasons a data breach can be so expensive for insurance agents is because there is no way of recovering the data losses that you and your clients suffer. Sometimes a breach happens so quickly and covertly that the information can be exploited before you've even noticed it was accessed.

After a cyber attack, all you can do is try to recover your clients' faith and your bruised reputation. That's just what Cyber Liability Insurance is designed to do. This policy is all about damage control and can help you pay for…

  • Cyber extortion. This is a type of cyber attack where a criminal holds your data "hostage" until you meet their demands. Usually, it's some type of monetary ransom, which your Cyber Liability Insurance can cover for you.
  • Legal counsel. When clients suffer a loss due to a data breach, they have every legal right to sue. Even if you are able to strike a deal out of court, you'll still need to hire a professional for legal counsel — and those bills can add up. Cyber Liability Insurance can also help you pay for litigation expenses, judgments, and settlements, should the claim escalate to that level.
  • Notifying customers / clients. Imagine sending an email or letter to every client whose information could have been compromised. Cyber Liability Insurance can cover these notification costs.
  • Credit monitoring services. A huge part of your damage control campaign will be making good with your clients. Cyber Liability Insurance allows you to offer them credit monitoring services, which could go a long way to restore their faith. (Some states require businesses to provide credit monitoring following a breach; others don't. Even if you're not legally obligated to offer this service, however, it can be a good way to regain your clients' trust.)
  • Good-faith advertising. Another part of minimizing a cyber attack's damage is to secure future business. Cyber Liability helps you pay for a good-faith advertising campaign to restore your reputation in the community.

All of these benefits may sound like they cost a lot, but that's not always the case. Cyber Liability Insurance is still the "new kid on the block," and because of this, premiums tend to vary wildly from one provider to the next. Insureon agents are in a prime position to find you a competitive rate on effective insurance for the digital age.

Cyber Liability: What Are The Risks to Insurance Agents?

Cyber Liability: What Are The Risks to Insurance Agents?

As an insurance agent, you may be thinking that your risk of cyber attacks or data breaches is low. But what if we told you that 70 percent of all cyber crime happens to businesses with 100 employees or fewer?

At first glance, this may seem counter-intuitive. Big businesses and corporations have far more valuable information to steal than your neighborhood insurance agent. But big businesses also tend to have strong security systems that make it more difficult for cyber criminals to gain access to their information.

Hackers and cyber criminals count on the weak (or absent!) security systems of smaller businesses because they know that these business owners don't always have the means to purchase cutting-edge defense systems for their data.

Receive Cyber Liability Insurance Quotes Today!

Insurance Agents: Receive Cyber Liability Insurance Quotes Today!

When you're ready to secure your data, it's time secure a Cyber Liability Insurance policy. You can either contact an insureon agent or fill out our easy electronic application to have no-cost quotes sent to your inbox.

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