What would you do if your agency had a data breach?
80% of businesses fail to recover from a breach because they do not know this answer. Responding to a breach is a complicated process that requires assistance from many different professionals. Failure to notify the affected individuals without unreasonable delay could cost your agency up to $1,500,000 in fines from government agencies. Add this to the $200,000 average cost to comply with notification laws, the legal liability and the reputational harm caused by the breach, and you can quickly see how this exposure can be devastating to your agency.
Independent Insurance Agents of Virginia, through their wholly owned subsidiary, Virginia Financial Services Corporation, has several cyber markets. Together we can find a solution to meet your requirements.
Why doesn’t my general liability insurance cover cyber liability?
General Liability insurance covers bodily injuries and damage to property which is a result of your products, services, or operations. Be sure to check your policy because cyber insurance is usually not included in your general liability policy.
Why Purchase a Standalone Policy?
A standalone cyber policy is far more comprehensive than an extension of coverage offered under another policy. It covers a broad range of cyber risks and is designed to help mitigate risk exposure by offsetting costs involved with recovery after a cyber-related security breach or similar event.
What to look for as a cyber insurance buyer
The number of companies offering cyber liability insurance is constantly expanding and coverage varies by insurer as there is no “standard” form, making it difficult to nail down the best option.
As part of our mission to provide our members with products that benefit its member agents, we have cyber markets for member agencies as well as their clients.
Key elements to cyber liability coverage that you should look for in a cyber liability policy:
1. First Part Costs
Reimburses the Insured for the costs they would incur to respond to a breach, such as IT Forensic Costs, data restoration, breach notification, Credit Monitoring Costs, Public Relations Expenses and Cyber Extortion Costs (including ransom payments to hackers).
2. Business Interruption
Provides reimbursement for the Insured’s loss of profits resulting from the breach, as well as any additional necessary expenses it may need to incur to continue business as usual.
3. Third Party Claims
Covers the Insured’s liability to third parties from a failure to keep data secure such as claims for compensation by third parties, investigations, defense costs and fines and penalties from breaching the Privacy Act.
4. Social Engineering
Covers the Insured’s direct financial loss and legal liability to third parties arising from social engineering fraud, spoofing, phishing, phreaking and cyber fraud.
If you’re interested in cyber insurance coverage for your business, please give our office a call at 800-288-4428 / 804-747-9300.