KIA&B 2017 Vol. 22, No.5 | Page 20

I 18 t was only a few years ago when Ross Hendrickson noticed a disturbing trend. Corporate retailers, chain restaurants and other large-scale businesses were finding themselves the victims of data breaches so significant their losses were reaching well into the millions. But the price they paid wasn’t just measured in dollars. As part of his plan, Hendrickson, who serves as president of MRH Insurance Group, made sure his staff became certified in cyber liability, learning the basics of IT exposures, cyber coverages and risk management. Once certified, the agency began seeking out various markets to begin promoting the coverage. The well-publicized breaches were causing doubt among consumers, wondering how well their personal information would be protected in the future, or if the business would once again leave itself vulnerable. Hendrickson could see he had to do something to protect his clients – small-town Kansas businesses that didn’t have the resources or deep enough pockets to combat a breach. “I’m still of the opinion that if you don’t bring it up as an agent, it’s very likely it’s still not being brought up,” he advises. “It has to, for the most part, start with the agency so that the client understands that they actually do have exposure. Very rarely do you run across accounts that don’t have some kind of exposure . . . obviously some have a lot more than others.” “We didn’t get into cyber liability because we were getting requests from clients,” Hendrickson explained. “I was monitoring and seeing what was going on in the media in breach after breach. And at that point, I made the decision to try to be on the leading edge of this.” The number of U.S. data breaches occurring in 2017 through June 30 hit a half-year high of 791, according to information provided by the Identity Theft Resource Center (ITRC) and CyberScout. The number is significant, officials said, because it illustrates a 29-percent increase from the amount KANSAS INSURANCE AGENT & BROKER | September - October 2017 |