Been getting pitched on cyber liability coverage as an add-on to my E&O policy. The insurance agent is saying it's essential since we handle so much customer data and utility account information. Premium would be about $800/year for $1M coverage. Seems expensive for something I hope to never use. Are any of you carrying cyber coverage and has it been worth it? Working mostly MLGW commercial accounts here in Memphis, so dealing with a lot of sensitive customer information.
Cyber liability - is it worth the extra cost?
Sandra, I added cyber coverage two years ago after hearing some horror stories from other consultants. Haven't had to use it yet thankfully, but the peace of mind is worth it. My policy covers data breach notification costs, credit monitoring for affected customers, legal defense, and regulatory fines. With all the utility account numbers, billing data, and customer information we handle, one laptop theft or email hack could be catastrophic without coverage.
I'd definitely recommend cyber coverage in today's environment. We're seeing more ransomware attacks targeting professional services firms, and the costs can be enormous even if no data is actually stolen. My policy through Technology Insurance Company includes business interruption coverage if systems are down, which could be critical if you can't access client files for weeks. At $800/year, it's a small price to pay for protection against potentially business-ending liability.