The Two Most Important Insurance Needs In The Next 5 Years: Cyber Insurance and Identity Theft Insurance

The Two Most Important Insurance Needs In The Next 5 Years: Cyber Insurance and Identity Theft Insurance

Recently, I read an article that said that insurance agencies that have not carved out a strong niche in the industry in the next 5 to 10 years will pretty much end up going out of business, and I 100% believe it to be true. The article stated that while insurance agencies try their best to differentiate themselves from each other (especially independent agencies), they usually don’t, or can’t.

Why?

Because most agencies are stuck in the “This is the way things have always been done.” mode. They don’t want to change. Change is hard. Many agencies are owned by aging insurance professionals who either don’t want to learn the new threats facing their clients, or don’t understand the threats.

Identifying The Threat

The Two Most Important Insurance Needs In The Next 5 Years: Cyber Insurance and Identity Theft Insurance

Over the last few months I have been working on learning as much as I can about the two threats that I believe will be the most important and impactful threats ever faced by American insurers and our clients:

Cyber Insurance and Identity Theft Insurance

We have all heard about Equafax, Target, and probably even the hacks that have taken place at the FBI, State Department, and other government agencies. These threats are real and many world leaders believe will be a part of the next global war the world will face.

However, what many people believe is that hackers are trying to attack big corporations and government agencies, not mom and pop businesses down on Main Street. You couldn’t be more wrong! Sure, hackers are working to hack into the systems and databases of mega corporations and government agencies, but those doing that are usually state sponsored by other governments.

The biggest threat isn’t from the “BIG” hackers. It’s from the ones trying to get your social security number, bank info, and other personal information.

As a matter of fact, the majority of hackers are aiming their attacks at individuals and small businesses, not mega corporations and government agencies. 

That is why it is so important for business owners and individuals to have the right insurance protection when it comes to their business info, customer data, and their personal information. When it comes down too it, what is needed isn’t a few security measures, or having the bank put a hold on your account if big purchases are made. It comes down to the RIGHT protection for you the individual, as well as the RIGHT protection for your business.

Let’s break that down:

Business/Commercial Cyber Insurance

The Two Most Important Insurance Needs In The Next 5 Years: Cyber Insurance and Identity Theft Insurance

Your business IS GOING to be attacked.

As a matter of fact, it may have already been attacked, you may just not know it yet.

As a business owner you are legally liable to protect the private and personal information of your clients including but not limited too:

  • Banking info
  • Credit card info
  • Names
  • Birth dates
  • Social Security numbers
  • Addresses
  • etc.

Hackers are working 24 hours a day, 7 days a week to breach your companies firewalls, and other security measures you have set up. If they breach your system, they could take all of your electronic data and sell it on the Dark/Deep Web for thousands of dollars. If that happens you may be responsible for the costs to fix, restore, or monitor clients that had their information stolen.

This could present a significant cost to you as a business (possibly millions of dollars), even if you are a small business. That is why you need to protect the business with Cyber Insurance. Cyber Insurance will help you in the event of a breach, cover you for costs associated with helping repair, restore, and fix things after a breach, as well as helping to put in safety measure BEFORE a breach to limit the change a breach occurs.

For businesses that save customer info, Cyber Insurance is an absolute MUST!!

However, Cyber Insurance can also protect you in the event your business is held ransom by hackers who breach your electronic data and hold you ransom for money. Cyber Insurance could pay the ransom (in some cases. Talk to me about which). Which means the business isn’t coming out of pocket thousands of dollars to pay a ransom.

If you are a business that collects and saves customer private and personal info, you MUST have Cyber Insurance. Doing so could mean the difference between surviving a breach and continuing business operations, or going out of business if a breach occurs.

Former FBI Director Robert Muller has said:

“It’s not a matter of IF your business is going to be hacked. It’s a matter of WHEN.”

Having the safe guards in place now can help prevent thousands of dollars in restoration, thousands of hours dealing with fixing things, and the stress of possibly losing everything you have worked so hard to build.

Identity Theft Insurance 

The Two Most Important Insurance Needs In The Next 5 Years: Cyber Insurance and Identity Theft Insurance

You have heard of identity theft, but you probably aren’t taking it seriously. Even after major compromises for companies like Yahoo, Target, the Federal Government, and most recently Equifax, clients still think “It will never happen to me.”

It probably already has happened to you, you just don’t know it yet.

Identity theft is more than having your banking info or credit card number stolen. It is having your whole life assumed by another. Where they take you personal and private info and create a life that ends up costing you. Often times people’s identities are stolen and the thief uses it to create businesses, buy cars, buy homes, take out credit cards that they will charge up and not pay off, etc. and everything could fall in your lap to be dealt with if you are not properly protected.

Federal agencies have repeatedly said over the last several years that the BIGGEST threat to the American consumer isn’t terrorism, but identity theft.

The key to being protected is making sure all of your bases are covered. Everything from you banking info, credit card info, to your social security number, address, and even date of birth. On top of that many thieves are targeting young children knowing that they can suck their identity for all it’s worth often times long before anyone notices.

If you have questions on how to protect your identity, for need some help understanding what is at stake, shoot me an email or give me a call. I am here to help!!

Conclusion

The point of this post is to make you aware of a huge exposure that all people and businesses have. While my intention isn’t to scare anyone, it is to help people understand that the issues of faced by consumers and businesses alike are HUGE and could present major financial challenges.

If you have questions about Business/Commercial Cyber Insurance, or Identity Theft Insurance please call me at 225-266-4573, or shoot me an email at swilson@midsouthagency.com.

I have partnered with some of the best insurance companies in the world to help my clients protect them, and what matters most to them.

Until next time,

Shawn

8 Comments on "The Two Most Important Insurance Needs In The Next 5 Years: Cyber Insurance and Identity Theft Insurance"

  1. Hello Shawn, very interesting post. I once had my Facebook page stolen and the individual (s) tried to get friends and family to send money. Fortunately for me and unfortunate for them my friends knew my lifestyle and contacted me first.
    My only comment is that I might of broken the post into two distinctive post although they are related.

    • Hey Harvey,
      Thanks for stopping by. Yes, I have heard of many people having their Facebook login info stolen and used for such purposes. Good on you for having friends who realized that was out of character. I’m glad no one got taken advantage of. I will be covering each topic in-depth in coming post so be looking for those soon.

      Thanks,
      Shawn

  2. This is great information Shawn! I can see where this is going to be the biggest type of insurance anyone will need. You are right, hackers are out there working 24/7 on breaching whatever they can. It is pretty scary really. Once they do this to you, it pretty much can destroy you. Great information, and hopefully this will hit home for some, enough to get protected.

    • Thanks for stopping by Matt’s Mom.

      I’m hoping this post opens people’s eyes to see at least the fact that there is a lurking danger out there. Hopefully some will take action and protect themselves and their businesses.

      Shawn

  3. Well, I think it’s time for me to take action…

    About a month or so ago, I received an official “welcome kit” from LifeLock, a well-known company that deals with identity theft. Sadly, I didn’t return the card to get the additional information. Truth be told, there was a small voice that said, “You don’t really need this.”.

    Well, I received another invitation from the same company, just today! I think it’s time to take this a lot more seriously. I’ve found that it’s better to take action, then wait for something to happen, then react.

    Thank you for providing such valuable information, Shawn.

    • Veronica,
      Yes!! Take action asap!! If you have questions on identity theft let me know. I personally recommend ID Shield for identity theft insurance compared to LifeLock. If you would like to talk about it feel free to shoot me a message.

      Shawn

  4. I never really thought about protecting my children from identity theft. It makes sense to me that in our society we would have people preying on our most innocent and then we cannot do anything about it and they have hundreds of thousands of debt against them.

    Thank you for bringing this to my attention.

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