The recent theft of 40 million credit and debit records may have not been the largest data breach, but it sure did get our attention.
In 2002, California introduced the first “breach notification law,” SB1386, and the majority of states quickly followed suit. Today, 46 states, the District of Columbia, the US Federal Government, Canada, and the European Union all have breach notification laws – often multiple laws applying to different types of data. The data breach tracking website datalossdb.org notes approximately 8,000 breaches since 2004, affecting over 700,000,000 records.
Many misconceptions persist about the exposures of “cyber” liability, the way in which these claims occur, and the extent to which they are insurable.
While many entities feel they are not exposed to “cyber” events, either because they do not handle Protected Health Information (PHI), because they do not sell goods or services online, because they outsource the storage of their data, or because they are small, there is almost no company that is not exposed to data breaches.
In reality, the simple presence of customer data, employee data, or confidential third party corporate data creates this exposure. Though we often think of these events in “cyber” terms, some of the most severe incidents have come from the loss of paper files.
Many companies feel their small size insulates them from data breaches, though the reality is that smaller entities often have less staff able to be dedicated to a data breach response and a smaller balance sheet to settle liabilities. Some small companies with limited assets have been forced into bankruptcy due to their post-breach liabilities.
The insurance products available in the market today are actually a group of products such as privacy liability (called “third party” coverage,) breach costs (“first party” coverage,) regulatory investigations, fines, and penalties, multimedia liability, cyber business interruption, damage to digital assets, and cyber extortion. Many carriers have innovative enhancements to these coverages, or specialized coverages not available elsewhere.
The most commonly used portion of a cyber liability policy is the breach costs insuring agreement, which covers services such as computer forensics, notification to affected individuals, credit and/or identity monitoring, and public relations. While limits, retentions, and policy language are all very important, many buyers find the availability of these resources, centralized through a single, experienced business partner to offer significant convenience and peace of mind.
Though the majority of data breaches are perpetrated by sophisticated hackers, Verizon’s 2013 Data Breach Investigations Report shows that approximately half of known data breaches were attributable to human error. Often, human error facilitates the hack. Approximately one sixth of the studied data breaches arose from third party business relationships. In almost all cases, data storage facilities disclaim all liability for data breaches, leaving the data owner responsible for the costs.
The cyber liability marketplace has changed significantly in the recent past, with coverage now available to companies of all sizes, lower premiums, and lower retentions/deductibles.
Want to be certain you are covered? Hays Companies’ Cyber Liability Practice assists clients ranging from pre-revenue start-ups to established multi-billion dollar entities. Cyber Liability Practice Leader Dave Wasson is available for complimentary consultations at 312.519.7141 or DWasson@HaysCompanies.com.
Hays Companies is honored to be named the 19th largest broker in U.S. business by Business Insurance magazine. Hays jumped to 19th after being ranked 21st in last year’s edition of the rankings, which are based on revenue. Business Insurance is an industry leading publication that has been publishing the rankings for 42 years. The rankings provide insight into trends shaping the insurance industry and also displays a clear benchmark for peers to compare themselves to. For eight years Hays has ranked among Top 25 Brokers and ranked in Top 40 for over a decade.
Hays is a privately held firm that is one of the fastest growing insurance, risk management, and employee benefits advisors in the country. We represent a dynamic, entrepreneurial assembly of the best and brightest insurance consultants in the industry. In 1994 Hays was founded to fill the void of customer service and creative ideas left untouched in the marketplace, and remains focused on fulfilling the needs of our customers, not the needs of Wall Street. Hays is headquartered in Minneapolis, MN with 700+ employees in more than 35 offices across the United States.
At Hays we only hire the best and brightest. We’re proud to recognize Jodie Braner, Vice President of Hays Companies of Georgia, who recently received two prestigious awards from the National Association of Health Underwriters. Jodie was awarded the highest honor, the Patty Murphy Lifetime Achievement Award, to recognize her career achievement, professional stature and civic, cultural, and humanitarian involvement. Jodie also accepted the Distinguished Service Award for her significant contributions to volunteer service at the local, state and national level. In addition, she has been named President Elect to the Executive Committee Board of Directors for the Georgia Association of Health Underwriters, effective 2013-2014.
Jodie’s expertise in the insurance field has brought her significant attention and positioned her as a thought-leader. Most recently, she was a featured guest on “The Doctors Roundtable” radio segment discussing the Affordable Healthcare Act and the effect it will have on consumers and employers. You can hear the segment here.
Jodie continues to exemplify leadership and provide top-notch service to Hays clients. “It is her dedication to help clients live healthier that allows us to partner and grow our business,” Mr. Grant Norwood, Practice Leader for Hays Companies of Georgia, had to say.
Hays Companies partners with businesses to help solve their highly complex benefits issues. Jodie and the Hays team provide unrivaled expertise, with a devoted commitment to client well-being and the community. This is what helps make the Hays client experience altogether different from other brokers.
In 2002, after the 9/11 attacks, the private sector was reluctant to develop security products and services in civilian settings due to the enormous liability risks involved. In response, Congress enacted the Support Anti-Terrorism by Fostering Effective Technologies (SAFETY) Act to encourage the development and deployment of new and innovative anti-terrorism products and services. The SAFETY Act created liability limitations for claims arising out of, relating to, or resulting from an act of terrorism. The Act applies to a broad range of products and services, including technology products, software and other forms of anti-terrorism security measures.
Since the SAFETY Act also provides liability protections for companies deploying SAFETY Act Certified/Designated products, the Department of Homeland Security (DHS) has listed an extensive list of approved technologies. You can find the list here. At Hays Companies we recommend any company that could reasonably foresee being exposed to a terrorist act or threat to highly consider purchasing approved SAFETY Act technologies to be used as a strong defense if you are attacked in a way that technology was designed to prevent.
At Hays Companies we also want our clients to consider if they are producing or consulting on products/services that could be used in an anti-terrorism capacity, that becoming Certified or Designated by the Department of Homeland Security could significantly lessen their potential liability.
To understand the criteria for designation or certification please refer to this SAFETY Act Fact Sheet and the SAFETY Act website. As of May 2013, DHS has made 600 approvals for products, technologies and services supporting more than 151,000 private sector jobs in small and large businesses.
To learn more about the SAFETY Act and how to apply for SAFETY Act protections, visit www.safetyact.gov. Hays Companies, Cyber Liability Practice Leader, Dave Wasson (email@example.com) is also available for consultations.
For the third straight year, Hays Companies of Wisconsin is proud to be named southeastern Wisconsin’s Top Workplace. The Milwaukee Journal Sentinel teamed with Workplace Dynamics, a leading research firm on organizational health and employee engagement, to determine the top employers in the area. Employers were measured by six factors: working environment, pay and benefits, leadership, execution, career and direction. The full listing published in the Milwaukee Journal Sentinel can be found here.
Hays strives to make employee satisfaction a high priority. Chief Executive Officer, Jim Hays, and the other senior officers expect hard work, high ethics and quality results, but it’s also a place where employees can always find assistance and support, particularly during any personal or family struggles. “We do what we think is best for our people and our customers and always emphasize work/life balance.”
Dan Sapiro, President of Hays Companies of WI shared, “By far this is the best group of insurance talent that I have ever been associated with.”
Hays Companies is one of the fastest growing risk management, insurance and employee benefits advisors in the country. Our 700+ team represents a dynamic, entrepreneurial assembly of the best and brightest in the industry. With over 30 offices across the country, we draw from a pool of unrivaled expertise, in legal, certified public accountants, financial services and claims to design a team devoted to your needs, and your needs alone.
Nothing beats a sunny day of golf. And it’s even better when it’s for a good cause.
The second annual Hays Celebrity Pro-Am Golf Tournament to benefit PARC was held on the prestigious Bob Sierra & Jack Nicklaus designed Avila Golf Course in Tampa, Florida on Monday, February 25, 2013.
PARC is a nonprofit organization whose mission is to provide opportunities for children and adults with developmental disabilities to exercise their independence and experience life to the fullest. Since 1953, PARC has grown into a large social service agency that serves more than 800 children and adults with developmental disabilities in the Tampa Bay area. PARC offers over 40 unique services and continues to be an advocate and a voice for individuals with developmental disabilities in the Tampa Bay area, the state of Florida and nationwide.
The day’s festivities began with a Pairing Party at Avila Golf Course on Sunday, where everyone gathered in anticipation to see which celebrities would be in their group. Participants and sponsors enjoyed food, music, PARC participant art, and a live auction to support PARC’s mission to help children and adults focus on what they can do, rather than what they are unable to do.
On Monday, golfers teed-up for a day full of golf, contests and prizes. Hays employees in attendance were Bill Mershon, Bill Allen, Brian Squire and Ryan McBride.
The tournament has raised over $200,000 to help further the PARC mission in Florida and beyond. Great weather. Great people. Great cause. The weekend was a huge success! Hays is proud to support PARC and to help raise money for children and adults with developmental disabilities.
Peter and Ann Seidenstricker with PARC Artist Debra Donohue
L to R: Bob Morrison, Bill Allen, Lou Pinella, Bill Mershon, Lance Barton
Congratulations to Hays team members Bruce Lyon and Bruce Hollcroft! They recently received first place honors at the American Society of Safety Engineers (ASSE) 2013 Professional Paper Awards Competition.
Their article, “Risk Assessments: Top 10 Pitfalls & Tips for Improvement” competed in the Technical Writing Category and was published in the December 2012 issue of Professional Safety magazine.
Mr. Lyon and Mr. Hollcroft will attend the Safety 2013 Conference in Las Vegas this summer to be recognized among their peers and receive their award.