Atlanta, GA - Rhodes Risk Advisors, a property and casualty insurance brokerage based in Atlanta, GA, has experienced significant growth in their Cyber Liability practice over the last 12 months. Rhodes contributes the growth to increased corporate awareness of cyber insurance due to recently publicized events, as well as Rhodes efficient and cost effective solutions for companies seeking the coverage.
Rhodes has recently provided Cyber/Data Breach coverage for the following:
Even with increased awareness by companies who have a cyber liability exposure, U.S. government officials are not confident enough action is being taken. This week U.S. Treasury Secretary Sarah Bloom Raskin voiced her concern over the cyber insurance coverage carried by companies with less than $1 billion in revenue, citing a lack of insurance take-up amongst these companies. The market for Cyber and Data Breach insurance doubled to $2 billion from 2013 to 2014, but still only represents a fraction of the overall market. "The main issue facing companies who do not currently have cyber coverage is education," said Lowery Thomas, Rhodes Cyber Liability Practice Leader. "Many companies think they do not have an exposure, believe that they already have coverage in place, or they are protected by their IT department. However, after deeper discussions with our clients, that is rarely the case. The protection from a Cyber Liability policy is an absolute must for anyone that has PII (personal identifiable information) circulating in their operations in any capacity."
Cyber Liability policies are far more comprehensive than consumers realize. In addition to the first and third party indemnity coverage provided to the company and whoever is affected by a breach, insurance policies typically cover other expenses that a company will experience following a data breach event. Most states have specific laws requiring notification to any individuals who were potentially affected by a breach. In addition to notification, which can be expensive in its own right, you are required to provide credit monitoring. In addition to covering required expenses, most policies will pay for a public relations team to help restore the company's image and help manage the data breach crisis.
Coverage typically includes:
- First and Third Party Network Security/Privacy Coverage
- Breach Notification Costs
- Credit Monitoring Service CostsPCI Fines and Penalties Cost
- Cyber Extortion
- Public Relations and Crisis Management Costs
- Business Interruption