High-profile hacks are becoming commonplace, especially among large corporations that collect health-related information and national retailers. “It’s no secret that as a benefits broker, your job now includes human resources and cybersecurity issues…,” wrote Pete Yozzo for BenefitsPro.
This vulnerability raises an important question — should you offer cybersecurity coverage? Here are three reasons it’s a need for your clients:
It’s Not Otherwise Covered
“Standard business and property insurance does not cover certain information or data, which includes, but is not limited to, customer information like Social Security numbers, credit card numbers or other personally identifiable information that could be valuable in the wrong hands,” wrote Reggie Dejean for Buffalo Business First. “Cyber intrusion insurance may be able to cover the event of a data breach.”
Cyber Threats are Everywhere
“Corporate email, unmanaged devices and social media accounts are all vulnerable to attacks,” Yozzo wrote. “These attacks most often come through infected email that carries malware, ransomware, and other viruses, all of which are programs created to damage or disable your devices.”
This is especially true of health-related information, which means your clients could be vulnerable around open enrollment time. “Health care information is a highly coveted…for cybercriminals,” wrote Erin Moriarty-Siler for BenefitsPro. “Five of the eight largest breaches in health care since 2010 happened in the first six months of 2015, and more than 111 million health care records were compromised just that year.”
It Highlights Cybersecurity as a Priority.
Insurance coverage is one way your clients can protect themselves against a hack, and it’s an important way to show they take the issue seriously. “Employees … expressed very little confidence in the efforts their organization is taking to combat document loss or cyberattacks,” wrote Jack Craver for BenefitsPro, citing research from the Business Performance Innovation Network. “[Less] than one-third of respondents believe their employer has ‘effective solutions’ to ensure document security and only 43 percent believe their organization…has clear policies on the matter.”
Employers should be taking other precautions, too, wrote Tom Pohl for Benefits Pro.
These include user testing to find gaps in security systems and educating employees.
“(Employers) need to prioritize educational resources and programs to teach employees how to spot potential cyber attacks, especially as they are handling their customers’ private information,” he wrote.