With daily news of cyber breaches and hacks, it’s remarkable Agents still report of customers who say “we’re too small, and it just won’t happen to us.” If you’re marketing or selling cyber insurance to first-time buyers, always include relevant loss and claim examples. The following breach sources help you locate real incidences that have occurred in virtually every type of organization:
- http://datalossdb.org/
- http://www.databreaches.net/
- https://www.privacyrights.org
- http://www.melamedia.com/HIPAA.Stats.home.html
- https://ocrportal.hhs.gov/ocr/breach/breach_report.jsf
Another objection reported from prospects is “we’re too small, we couldn’t have a big loss.” Most prospects, even most insureds who already have cyber insurance, have little knowledge of all the ways they could sustain a loss, the amount of that loss, nor the cyber perils a good policy will cover. The following coverages are available for virtually every organization, and none of these losses was ever intended to be insured by property, CGL, E&O or umbrella forms. So a cyber policy is the best option for:
Your First Party Costs:
Business Interruption and Extra Expenses
Dependent Business Interruption
Extortion & Terrorism
Data Reconstruction and System Damage
Reputational Harm and Public Relations
Funds stolen from your online bank accounts
Your Third Party Liabilities
Tort Liability—Privacy Liability coverage
Contractual Obligations—vendors, suppliers, customers, PCI compliance
Regulatory Obligations—Regulatory Response coverage
Media Liabilities—Defamation, Intellectual Property Infringement, Invasion of Privacy, Content liability
Your Breach Response & Mitigation costs
Network Security coverage
Notification costs and Credit Monitoring
Forensic expenses
Call Centers
Consumer Redress Funds
Public Relations.
Recently we learned a so-called “discrete dating website”, Ashley Madison was hacked. This involves up to 37 million individuals, granted, there’s no relevance to your average SME (small medium enterprise), but it’s simply titillating and maybe something certain prospects can identify with. 🙂
For more resources, tools, reports and advice about marketing cyber insurance, consider joining the cyRM – Cyber Risk Manger Group on LinkedIn. You’ll need to complete the cyRM Course first – if you’re an Agent in the ARM network, email us for complimentary access.