Cyber Liability Insurance in Massachusetts
Are you sure you are doing everything you can to secure your company against cyber threats?
Almost every business – large or small, publicly traded or non-profit, academic or government agency – has some level of risk for cyberattack. However, those organizations that keep any type of personal information in their databases are especially vulnerable, including:
- Financial institutions, like banks and credit unions
- Accounting offices
- Insurance agencies
- Law firms
- Medical offices
- Dental offices
- Schools and universities
- Large retailers, like supermarkets
- Businesses with lots of online transactions and/or credit card activity
- And many more
These types of businesses commonly retain detailed records – about their employees, clients, and vendors – that contain data that no one wants to fall into the wrong hands, including credit card information, social security numbers, patient histories, driver’s license numbers, and financial records.
However, whether or not your business falls into the categories above, you should act to reduce threats, minimize risk and protect your company against the most common cyber threats. On any given day, as you and your team go about business as usual, there are nefarious people, hackers and black hats, that are trying all sorts of sneaky ways to direct an attack at your company’s systems and grab your critical data.
How do you protect privacy and secure data in today’s highly connected world?
Our business insurance professionals have identified cyber coverage, also known as data breach coverage, as critical protection that most businesses we work with should consider. As your insurance partner, we will first evaluate your areas of risk and vulnerability, and then, based on this thorough analysis, recommend the data breach and cyber liability insurance solution that is warranted for your level of cyber exposure. Our responsibility is to ensure that, should a breach ever happen to your company, the recovery process will be as seamless as possible.
Because HUB International is always striving to do more for our customers, and to do it better, we have developed five very clear roles for our team to play in helping you safeguard your systems and data:
1. Risk Assessment
Identifying the extent of your cyber exposure requires a conversation with you, which can be done in person or by phone. The main goal of this consultation is to understand how a data breach might impact your company and if your level of cyber exposure calls for investing in a specialized insurance policy. In order to assess your needs, we will ask you a variety of questions about your:
- Management of privacy exposures and privacy controls
- Computer systems controls
- Website content controls
- Media liability controls
- Prior insurance and claims, and the specifics of the circumstances
This process can be very informative and instructional for our clients. Your answers to these questions might cause you to stop and consider key areas where you are leaving yourself open to a breach as well as what you and your team could be doing better to secure the data you keep.
2. Education
Helping you understand your cyber exposure starts with our consultative approach. The Q&A described above might alert you to unsafe workplace behaviors, systems, or processes that your team should address immediately. Our knowledge-sharing process also includes calculating the average cost per record for a breach should it occur, and thus, what your max loss could be in the case of such an event. If you are a Doctor’s office or an Accounting firm, your breach is not going to be nearly the size of a Home Depot or Equifax, but the related costs, as a percentage of your business, could be just as devastating financially and for your reputation. Last, but not least, before you make any final decision about your data breach and cyber liability insurance policy, your HUB International professionals will review what this valuable protection covers in case of an incident, including:
First Party Coverage, for costs that your company will incur in responding to a breach, including mailing notification letters, credit monitoring services, public relations and any other actions you may need to take to handle the breach and comply with the state and federal regulations.
Third Party Coverage, for defense and liability costs that your business might face if the breach is found to have resulted from your company’s negligence.
While these are the two core components of data breach and cyber liability insurance, today’s cyber coverage is much more complex than what it was just 10 years ago. In order to respond to the broader needs of businesses like yours, that are increasingly relying on technology for their day-to-day operations, this type of coverage has significantly expanded in scope. Your HUB International agent will not only ensure that you have the robust coverage that your particular situation requires, but that you clearly understand it.
3. Finding You Cost-Savings (without sacrificing service or quality)
We strive to get you the most competitively priced insurance coverage from among our select group of top-rated, national carriers. Our team uses a very stringent evaluation process to determine the insurers we want to work with and we thoroughly compare and contrast what is being offered in the marketplace. You can be confident that any insurer we choose will provide you with a turnkey response should you ever experience a data breach, will fulfill the commitment they have made to pay your claim, will have expertise in this insurance market, and will have a strong record of both professionalism and providing the highest level of customer service.
4. Monitoring Activity
Staying on top of your company’s changing needs is as critical as getting you the right coverage in the first place. Moving into a new market, adding a service, or any other number of ways your company may expand or grow over the course of a year, can significantly affect your exposure to a data breach as well as other business liability issues. The HUB International team will make sure your insurance coverage is responsive to your company’s ever-changing needs and requirements.
5. Connecting You To Experts
Maintaining relationships with third-party vendors who can help you recover from a breach as quickly as possible and who are experts in the field of cybersecurity is, to us, a very important part of being your insurance professional. HUB International may be specialists in data breach and cyber liability insurance, but when you need help testing your vulnerability to a cyberattack and reducing the risk of something bad happening to your data, we will have a network of experts we can recommend. In some cases, working with our partners to make changes that improve your network security might actually decrease your data breach and cyber liability insurance premium.
What to do if a data breach happens to your business?
If you are a HUB International client, there is a simple answer: Please give your HUB International professional a call. You can also contact your insurance carrier directly and, if your situation occurs after normal business hours, that will be the fastest way to get assistance. However, whoever you decide to contact first, please be assured that you will get an urgent response to your situation. Our team will help you file your claim with your insurer, which could initiate a whole series of actions aimed at getting you back to normal business operations as quickly as possible, including:
- An emergency forensic assessment may be conducted by a team of experts to determine exactly what happened, the severity of the breach, and if your systems are secure.
- Legal services could be provided to assist you with regulatory compliance, including how to self-report the breach and other ways that you are required to respond to this incident.
- Public relations management may be available to help you with the steps you should take to restore your business’ reputation, including the best way to notify impacted customers and employees, and organizing and creating a media response.
- Monitoring services may be set up on an ongoing basis if warranted.
Another important resource that will be available to you in case of a significant data breach is HUB International’s in-house, full-time claims expert. Staying on top of your situation will be on her priority list, from confirming that all the initial proper steps are being taken by your insurer, to regularly checking in with your carrier to make sure that your claim stays top-of-mind and on-track for swift resolution.
As a business owner, you are accountable for securing your company’s data, whether it’s on premise, in the cloud, on your employees’ phones, or in a company blog. So, it’s absolutely critical to ensure that you are doing everything you can to reduce the vulnerability of your company’s sensitive and personal data to cyberattack. The local and highly experienced business insurance professionals at HUB International are here to collaborate with you and your team to assess your risks and to identify the optimal data breach and cyber liability insurance for your company’s unique exposures.
If you are ready for a more personal relationship with a trusted insurance agent who is always looking out for you and your business, then call us today at 833-GoCallHUB or stop into either of our two convenient Massachusetts offices.
Did You Know?
In addition to Data Breach and Cyber Liability Insurance, all companies should consider securing their businesses with these additional coverages:
- Crime Insurance, which is protection against employee dishonesty, burglary, computer fraud, and other business crimes.
- Social Engineering, is an enhancement to crime insurance which covers losses resulting from an employee of your company being tricked into transferring funds to a fraudster.
