My E&O carrier is pushing a cyber liability add-on for an extra $800/year. With all the utility data we handle - account numbers, usage histories, facility information - I'm wondering if it's necessary. Anyone had experience with data breach claims? PPL and Met-Ed have pretty strict data security requirements in their contracts now.
Cyber Liability Add-On Worth It?
Sylvia I added cyber coverage two years ago after PNM started requiring it in their vendor agreements. Haven't needed it yet but for $800 it seems like cheap protection. The notification costs alone if you have a breach can run into thousands, plus potential fines if you're handling protected customer data.
I've had cyber coverage for three years through my E&O carrier. ML&P required it for a large audit contract. The coverage includes breach notification, credit monitoring for affected customers, and legal defense costs. Given how much customer usage data we see, it's probably a good idea even if not contractually required.
Patty makes a good point about the notification requirements. I handle a lot of Xcel Energy accounts in Texas and their data protection standards are getting stricter every year. My carrier offered cyber coverage as part of a package deal that actually saved me money overall compared to separate policies.
Mitchell that's interesting about the package pricing. I'm up for renewal with Cincinnati Gas & Electric requiring cyber coverage on their new vendor requirements. Going to ask my agent about bundling it with my E&O rather than buying standalone. The compliance landscape is definitely changing in our favor for having this coverage.