Data Breach & Cyber Liability Insurance
Are you protected against the costs of a data breach?
Did you know the average cost of a data breach is $150 per record?
It could be a lost laptop, or a persistent attack by hackers a world away. Every breach is different—and every one requires a smart, strategic response. That's why we have partnered with a leading insurer to offer a cyber risk protection plan that provides first class assistance to take the pain out of dealing with a data breach. If you discovered a data breach, whom would you call? Would you know how to comply with state regulations and avoid fines and penalties? The HIPAA Breach Notification Rule, 45 CFR §§ 164.400-414 requires that all HIPAA covered entities and their business associates to provide notification following a breach of unsecured protected health information.
Security Breach Notification Laws
Could your insurance agency weather a data security breach?
Eighty percent of businesses that experience one don't. The right insurance can keep your agency from becoming part of this startling statistic. Every data breach is different. Generally speaking, however, in considering the cost of a response you can expect to pay from $10,000 to $100,000 just for a forensics expert to get to the root of a breach and contain it. If that is not enough reason to consider purchasing data breach protection for your business, here are 7 more:
- Some 55 percent of small businesses responding to a recent survey have experienced a data breach.
- Data held by small businesses is low hanging fruit. Only 38 percent of breaches in the latest Verizon study impacted larger organizations.
- Responding to a breach is not only costly—it's complex. Experts from multiple disciplines—from forensic investigators, to public relations firms, to privacy counsel—may be needed to mount a coordinated response to even a small incident.
- A single laptop left on a commuter train or stolen at an airport can cost an agent nearly $50,000—most of that being expenses to respond to data breached—or potentially breached.
- State and federal regulations dictate proper handling of private information. If this information is breached, agents must navigate the different laws in 46 states that mandate how victims must be notified.
- Even if you outsource data handling, your exposure stays in-house. Some 70 percent of small businesses report that breaches are more likely to occur when outsourcing data.
- The exposure is not just from hackers intruding on electronic systems. Breaches are caused by everything from lost, discarded, or stolen laptops, PDAs, smart phones, and portable memory devices, to innocent procedural errors and acts of disgruntled employees.
Option Coverage Coverage Liability Limit Coverage Limits Incident Response Member Pricing - Agent Non-Member Pricing - Agent Single Payment Monthly Single Payment Monthly A
- Information Security, Privacy & Website Media Liability
- Security & Privacy Incident Response Team
- Crisis Management
- Regulatory Defense & Penalties
- PCI Fines & Penalties
$250,000 per claim/annually 2,500 affected individuals $158
$45.92 down and $12.92 monthly
$194 $84.41 down and $15.42 monthly B $1,000,000 per claim/annually 10,000 affected individuals $291 $64.37 down and $23.33 monthly $327 $102.87 down and $25.83 monthly
- All pricing includes a $25 admin fee and 6.5% applicable state and surplus lines taxes. Non-member pricing includes $36 NAPA dues. Monthly payment option includes monthly processing fee.
- Incident response limit options of 2,500 to 10,000 impacted records available
- Expert forensic and legal assistance to help determine the extent of the breach and steps needed to comply with applicable laws
- Notification provided on a number of affected individuals basis, not a capped dollar amount, to persons who must be notified under applicable law or those who are determined to be subject to risk of financial, reputational or other harm
- Notified individuals receive an offer for 12 months of free 3-bureau credit monitoring, including services for minors
- Identity theft-related fraud resolution services for individuals who become victims of identity theft
- Loss control information service, including compliance and breach response information, email alerts of key legal and regulatory developments, and expert on-line support for client questions
- Click to download the $250k specimen policy
- Click to download the $1M specimen policy
Low Coverage Option
- Limit of 2,500 records for breach response notifications services
- 250K/250K for all other covered expenses – sublimits apply
- Sublimit of $50,000 for Crisis Management & Public Relations
- Sublimit of $50,000 for Legal and forensic expenses related to privacy breach services
- Sublimit of $10,000 for Foreign Notifications
- Sublimit of $250,000 for Regulatory Defense & Penalties
High Coverage Option
- 10,000 records for breach response notifications services
- $1M/$1M for all other covered expenses – sublimits apply
- Sublimit $250,000 for Regulatory Defense & Penalties
- Sublimit $100,000 for Crisis Management & Public Relations
- Sublimit $100,000 for Legal and forensic expenses related to privacy breach services
- Sublimit $25,000 for Foreign Notifications
Liability Coverage Limit Options
- $250,000 and 2,500 "notified individuals" per claim/annual aggregate
- $1,000,000 and 10,000 "notified individuals" per claim/annual aggregate
- $2,500 (damages, forensics, legal fees, public relations, network security)
Program Retention – Notification Services
- Notification Services available for data breach affecting more than 100 individuals (first individual coverage)
- Below 100 individuals #800 resource still available and damages may be covered, subject to policy terms and conditions
This coverage is specifically for:
- Life and Health Agents
- Registered Reps
- Investment Advisors and Financial Planners
- Property & Casualty Agents
- Real Estate Agents
Program Underwriter:Certain Underwriters A Lloyd's
This policy is underwritten by certain underwriters at Lloyds on a surplus lines basis. Lloyd's syndicates are rated A (Excellent) by A.M. Best and A+ (Strong) by Standard & Poors. This policy is subject to state limitations and may not be available in your state. Surplus lines carriers do not have certain state protections.
Payment OptionsPay in full or choose monthly payments via credit card or electronic funds transfer (EFT)
THIS INSURANCE IS ISSUED PURSUANT TO THE FLORIDA SURPLUS LINES LAW. PERSONS INSURED BY SURPLUS LINES CARRIERS DO NOT HAVE THE PROTECTION OF THE FLORIDA INSURANCE GUARANTY ACT TO THE EXTENT OF ANY RIGHT OF RECOVERY FOR THE OBLIGATION OF AN INSOLVENT UNLICENSED INSURER.
SURPLUS LINES INSURERS' POLICY RATES AND FORMS ARE NOT APPROVED BY ANY FLORIDA REGULATORY AGENCY.