Imagine that your customer files, financials, and private information have just been breached. Actually, pretend you find out that your first breach happened months ago and you’re just now being informed.
This isn’t a rare occurrence these days. With the sophistication of hackers, your systems could be susceptible to this. Anti-virus programs, spam filters, and firewalls are only as good as the latest version you have.
Real estate companies, including property managers, portfolio managers, REITs, and brokers, all have sensitive material that hackers are looking for. These types of companies are a great target for a cyber/data breach because of the information on file.
Has your broker designed a comprehensive cyber liability policy to fit your needs? Does it cover you for first- and third-party liability? Are limits high enough to offset the cost of legal fees, monitoring services, and crisis communication assistance to keep your company afloat?
These are just a couple of components to think about. Here’s what underwriters are looking for when it comes to underwriting your business:
- Annual revenue
- Scope of business
- Security systems in place to protect data
- Breach response plan and privacy policy
- Risk transfer in place with vendors, contractors, etc.
- Number of records handled and kept
- Preplanning and safeguards
- Outline of who has access to sensitive information
A recent study by IBM in 2023 states that a data breach will cost a company an average of $4.45 million. This number has increased 15% over the past three years. My advice to you is to ask yourself: Can my company afford to pay these costs out of pocket?
For more information on cyber and privacy liability, contact an MMA advisor today.
