When faced with the prospect of paying more for their own insurance, many title agents find a reason to not purchase Cyber coverage insurance. Is this a wise choice? Here are a few of the scenarios when paying more for insurance would save thousands of dollars of expenses and also minimize the distraction to your team. Time spent dealing with an unexpected Cyber claim is time not spent developing the business.
- An email address in your company is hacked, and criminals scroll through that inbox, collecting information while covering their footsteps. Most states would require you to then notify everyone whose personal information was in that inbox, from clients, to vendors, to partners. Cyber insurance could pay for those notification costs and a PR consultant to help your business mange negative press about the incident.
- A malware, accidentally downloaded by an employee, locks all computers on your network and threatens to delete all your information and files. If your information is not backed-up in real-time, you might need to pay the ransom in order to preserve the continuity of your business. This could especially be true if you have several large transactions that need to be processed immediately.
- An employee mistakenly calls the number listed on an email to verify wire instructions for a mortgage payoff, instead of the number on file. The employee confirms the wire instructions with a criminal impersonator and wires $100,000 to the wrong account. Because the mortgage still needs to paid-off for the transaction to close, your company is responsible for the $100,000.
Please note! Not all Cyber insurance policies cover all the scenarios that are important to a particular title agency. The Merriam Title team is happy to work with you to negotiate the Cyber coverage that is best for your company. Contact us today to discuss further.
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