Cyber Insurance

No InfoSec program is complete without cyber liability insurance coverage.

Almost unheard of just a few years ago, cyber insurance is now front and center in security programs. This insurance addresses two basic risks: first, the liability risk to the club if sensitive member information is compromised, and second, the risk (and substantial cost) of notifying members that their information has been compromised. While many clubs worry about potential lawsuits by members stemming from a breach of the member database, the major risk is the cost regarding damage to the club’s image and in dollars and in managing such a breach.

Average Cost per Compromised RecordData breach mitigation costs continue to increase as state notification laws are evolving. This combination is making cyber liability coverage a business need. With proper coverage, your carriers resources handle notifications in accordance with each states specific requirement. Protection is available to safeguard your business by providing coverage for legal liability, defense costs and expense reimbursement (including notification costs).

Ponemon Institute LLC–”Annual Study: Cost of a Data Breach”–2015.

Why you need cyber liability/security protection in 2016

  1. Stringent Laws/Regulations
    Failure to comply with legal and regulatory obligations places the success and reputation of your club at great risk.
  2. Advances in Technology
    Today’s technology makes safeguarding your club against privacy breach more important than ever.
  3. Global Outsourcing
    Privacy risks don’t end at your firewall. Your club is responsible for any breach (including outside contractors).
  4. User Error
    Another all to common exposure is the result of “user error”. Accidental mistakes can lead to a data breach as well.

    Courtesy of CBIZ Insurance Services, Inc.