Cyber Liability Coverage Options
It seems like every week, there’s a new data breach announced in the news. If your company experiences a data breach, it will likely cost you thousands to contact every client and past client whose data could be compromised.
As part of your CRES real estate errors and omissions, you have this cyber liability option to protect you:
Data Breach Notification
Up to $50,000 Cyber Notification to cover the insured (“first party”) for client notification costs due to a data/security breach. Make sure the “Broad Form”* coverage endorsement is part of your policy. It covers Cyber Notification and many other events. (This is coverage that may be included or may be optional coverage in your policy.)
Criminals Aren’t the Only Digital Threat
It’s not only malicious, deliberate attacks that can cause data breaches. Human error and technical glitches can be just as damaging as criminal activity. In fact, only around 1/3 of data breaches are the result of criminal activity.
- The average notification cost of a data breach is $590,000.1
- The average post breach cost is $1,720,000.1
- The average additional cost of lost business has grown to $3,970,000.1
- The average TOTAL cost of a data breach is $7,010,000 — a 7% increase since 2015 1
To Help Avoid Data Breaches
Scrutinize your emails carefully before taking action . . .
- Check every email “from” address before responding. And NEVER click on an attachment from someone you don’t know.
If you don’t know the sender, try to verify their identify through other means. If it’s a real estate licensee, try to identify that individual through online resources. Call the sender using a phone you’ve found online, rather from a phone number in the email.
- Be sure you’re using a secure network
If you’re using public Wi-Fi, always do so through a Virtual Private Network (VPN). Keep careful track of who has access to your network. Remove access of any previous employees or vendors promptly.
- Never use thumb drives that aren’t yours
Try not to introduce unidentified technology into your laptop or computer at work.
- Be careful with your hiring practices
Be sure to conduct a thorough review of any individual you’re considering to add to your team.
If your company needs more comprehensive cyber liability coverage, we can find the right policy for you at the right price.
*Basic Cyber Notification coverage is included with policies that include Broad Form coverage. This is “first party” data breach notification coverage (covering the insured). Cyber Notification and the optional Cyber Liability protection does not cover the actual transfer of money or security. Read each policy for a full comparison of coverage and benefits. Certain restrictions apply. All coverage is subject to Underwriting and other qualifications.
1 Source: Ponemon 2016 Cost of Data Breach Study: Global Analysis