After exhaustively discussing every aspect of their E&O coverage, most clients are not overly eager to hear about the “other” coverage recommended, in addition to E&O. The mindset seems to be that if a coverage is not required, then it is not a coverage a client should carry. Perhaps it is the additional expense or the time it takes to learn about something new. Perhaps the client still believes “that won’t happen to me.” Regardless, there may always be an insurance policy available to you that you do not have, but which you absolutely should have. It is my duty not only to ensure you are aware of the relevant risk, but to also be available when you agree that the coverage being discussed is one you need.
We are all familiar with the risks of doing business in this high tech environment. Those risks involve online transactions, information transfer, record keeping and data storage, to name a few. Technology allows for greater efficiency in the workplace, saving us time, money and other valuable resources. We lose sight of the fact that technology could become catastrophic for a company. A large E&O claim can pale in comparison to the damage associated with a data security breach. Every business, large or small, is at risk.
What are some potential risks to you?
- Personal information stored electronically is compromised by third party software that gains access to your system (hacking, virus, etc.)
- Unauthorized wire transfers from company accounts stemming from data breach
- Unauthorized individuals altering routing information on outgoing payments and depositing those payments into erroneous accounts
- A lost or stolen laptop, smartphone or flash drive
What are the ramifications of the above mentioned risks?
- The cost and time associated with finding and fixing the breach that occurred
- The obligation to notify every individual whose information could have been breached, now with possible state fines and legal expenses
- Restoration expenses if the computer system was damaged
- Poor public perception and/or damage to your company’s reputation
What is the coverage that can help avoid the above-mentioned problems?
- A Cyber-liability Policy is separate from your existing commercial insurance policies
- Coverage that can be tailored to suit your individual needs
- Protection provided for fraudulent transfers, damages brought against you for breach of information and the hiring of specialty consultants who are trained to repair breach and minimize impact
- Services made available to you for future data security breach prevention
When you are ready to review further coverage, please contact us and take the necessary step towards protecting your business.