My insurance agent is pushing cyber liability coverage in addition to E&O. Says data breaches are becoming more common and utility customer information is valuable to hackers. We all handle sensitive billing data and account numbers. Is anyone carrying cyber coverage? Seems like another expensive add-on but maybe it's necessary in 2025.
Cyber liability - do we need it too?
Jennifer, I added cyber coverage last year after hearing about several consulting firms getting hit with ransomware. The scary part is they often target smaller businesses because we have less security infrastructure. For $800 annually, it seemed like cheap protection considering how much PG&E customer data I handle.
The coverage isn't just about hacking - it also covers accidental disclosure. I accidentally emailed the wrong Excel file to a customer last month with another client's usage data. Thankfully no harm done but cyber coverage would have handled notification costs and potential fines. Duquesne Light takes data privacy very seriously.
Good point Claudia. Kentucky utilities are getting stricter about data handling requirements. LG&E now makes me sign additional privacy agreements for commercial audits. The regulatory environment is changing and we need to protect ourselves accordingly. Cyber coverage seems prudent.
What does cyber coverage actually pay for? Is it just legal fees or does it cover business interruption if your systems get locked up? I'm storing more customer data in the cloud these days and wondering about the exposure. Dominion Energy customers trust me with sensitive information.
Janet, good cyber policies cover legal fees, notification costs, credit monitoring for affected customers, forensic investigation, and business interruption. Some even cover ransom payments though I wouldn't rely on that. The key is making sure it complements your E&O coverage rather than overlapping. Worth discussing with the AAUBA group policy administrators - they might offer cyber as an endorsement.