THIRD PARTY LOSS COSTS( legal actions brought by a customer / regulator)
• Cyber liability, for hacks or viruses sent from your systems.
• Regulatory actions and investigations and response coverage.
• Privacy liability coverage, the legal obligation imposed by statutes including notification and other compliance costs, such as credit monitoring for all affected customers and employees.
• Contractual obligations to customers, suppliers and vendors.
• Contingent business interruption.
• Defamation from media content.
• Invasion of privacy.
• Intellectual property, copyright infringement, failure to maintain confidentiality.
State and Federal Laws
After understanding the coverage afforded by cyber policy, a good area to focus on is understanding the state and federal laws. During my research I came across a helpful website that shows the various data breach statutes for all states which can be found here: goo. gl / 4NCEr4( case-sensitive shortened URL).
The duties these laws create for your customers, including fines, penalties, and notification create substantial exposure for them.
Increase Revenue and Reduce E & O Exposure
Nearly every present or future customer that maintains records of customer information, uses computers and is reliant on technology has an exposure and the need for cyber insurance, yet most have a very limited knowledge of the subject. Insurance agents with knowledge of cyber have a wonderful opportunity to add value in protecting their customers, while increasing revenue and reducing their agency’ s E & O exposure by offering cyber coverage. Any agent that understands their clients operations and is able to inform them of what harm and costs a data breach or network security failure could impose on them would be offering them a great service. Insurance agents, if only to protect their own errors and omissions insurance should offer cyber insurance to all of their commercial customers.
Cyber Markets for Your Agency and Your Customer
AScK has relationships with the several leading carriers offering stand-alone cyber liability policies. Their coverage forms are among the strongest in the marketplace with affordable premiums. Appetites include a very wide range of businesses and for many risks AScK staff can rate in-house for quick turnarounds. And remember, business placed with AScK directly benefits KAIA’ s ability to advocate and provide various services to our members.
With only approximately 25 percent of members indicating that there agency had a stand-alone cyber policy, AScK also has a cyber product for member agents. Aside from your agency E & O, what’ s your agency’ s biggest exposure? While a nice coverage feature, agents should not rely only on the data breach coverage on their E & O policy. For the future of your agency, PLEASE get a stand-alone policy today! You’ ll find that it is extremely affordable and sets a good example when telling your customer to buy one.
Contact us at 800-229-7048 or asck @ kaia. com to learn more about these coverages or to discuss implementing a process to offer quotes on all of your commercial lines accounts. Applications can be found at www. asckus. com.
14 KANSAS INSURANCE AGENT & BROKER | September- October 2017 |