Cyber Liability Insurance: A Lucrative Market For Insurance Agents
Everyone increasingly depends on the internet for their everyday work. Billions of people’s data is stored online. That means there is always a risk of data breach.
Take the case of Uber. Fifty-seven million user accounts and 600,000 driver’s accounts on the popular ride-hailing app got breached back in 2016. News of Uber paying $100,000 to the hackers to delete the data instead of reporting it surfaced later, which made things worse for them. While Uber offers Rideshare Insurance, it’s not clear if they had any cyber liability insurance to cover the damage caused by the massive attack.
The cyber-attack continues to cost Uber to this day. It had to pay $148 million to settle the legal actions filed against them. When the lawsuits for failure to prevent data breach start coming, D&O Insurance can help protect the business and employees. As an insurance agent, you can also pitch D&O insurance to potential clients, especially ones with companies that handle consumer data.
Just like Uber, several other companies are at risk of being attacked. Facebook is a prime example. In 2018, around 50 million users’ personal information got exposed after it got attacked. The attack put a dent in Facebook’s reputation. Smaller businesses can’t afford to deal with such massive hits. Cyber Liability insurance against such attacks is turning out to be as indispensable as commercial insurance or commercial umbrella insurance.
This very need is a significant reason as to why insurance agents should choose to specialize in this niche.
Why? Because at the end of the day, your clients are concerned about the ultimate reason — to protect their business!
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Cheney Meaghan Anne DiVitto Nick Wells Stefan Beyer Jonas Snellinckx