Cyber Liability is on everyone’s mind these days, but many agents find that they don’t know where to turn to ask questions. With that in mind we have taken it upon ourselves to learn as much as we can about Cyber Liability so that we can be your trusted partner in cyber protection.
Risk to Small Business Owners
We have all heard the stories about Sony and Target, but those large scale breaches aren’t the stories that resonate with most insureds. Many small business owners think they don’t need protection because they think “well I’m not Target… no one is thinking about me” when in reality 71% of security breaches target small businesses.
If you’re having the conversation with your insured small business owner you’re likely to hear “isn’t that a problem for stores and restaurants?” That savvy insured would be right, that 69% of attacks are on retailers and restaurants, but that means 31% of attacks are hitting industries who don’t think they have an exposure.
With mandatory reporting laws in most states (including Indiana, Illinois and Wisconsin) your insured may be legally bound to notify customers of a breach of their information. On average this costs $188 per record compromised in a data breach. With steaks that high, your insureds need to know what’s available to protect them.
Costs of a Cyber Attack
In 2014 cyber crime, which is now the leading cause of data breach, climbed by more than 9% to 12.7 million for US based companies.
On top of the increase in cyber crime, the time it takes to resolve the issue created by an attack is also growing. In 2013 it took an average of 32 days to resolve an issue. In 2014 that timeframe climbed to 45 days on average.
Can your insured afford to be out of business for a month-and-a-half due to an unforeseen attack?
The trend is that more attacks are occurring all the time, and they are taking longer to recover from. In a climate like that, many insureds can’t afford not to protect themselves from this type of risk.
Talk to Your Insureds about Cyber Liability
Don’t keep your insured small business owners in the dark, operating at risk because they don’t understand their cyber liability risk. Show them you care about their financial security by providing them with the information they need in order to make smart decisions about their insurance coverage.
What should you do if you as the agent have questions or a lack of reliable information about Cyber Liability? Contact your Inside Broker & Underwriter at Benchmark Management Group.
We’re here to help you understand the ins and outs of Cyber Liability coverage so you can be effective in communicating with your insureds and can help them mitigate their risk with optimal coverage.
Select the Right Coverage
At Benchmark Management Group, we have access to over fifteen stand alone cyber markets, with minimum premiums starting below $1,000 for $1 million in coverage. The majority of our markets will provide you with a quick indication based on a few pieces of information and a website.
This is an invaluable tool to take with you on your renewal presentations. Having identified the exposure, the coverage information and the premium makes a strong argument for your insured to seriously consider Cyber Liability coverage.
One of the trickiest things about cyber is that each company’s form is very different from the one before. It is this fact that got us started on our journey to become cyber experts. We have done extensive research on the forms our markets offer so when you send us a risk we can help you determine which market fits your insured’s needs best.
We can find coverage for:
- Crisis Management & Public Relations
- Intentional Wrongful Acts of “Rogue” Employees
- Loss of or Reduction in Revenue
- Payment of Costs of Repairing or Restoring Your Data if It’s Damaged
- Punitive Damages
- Regulatory Action Defense Expenses
- System Extortion Expenses and Losses
- Voluntary Credit Monitoring
- Voluntary Notification of Customers
Are you looking for something you don’t see on the list? Simply ask. We have exceptional relationships with the underwriters at the markets we represent and we pride ourselves in finding solutions for our retail agent partners.
As always it is our goal to be a resource to you. Please don’t hesitate to contact us if you have additional questions about Cyber Liability.