Cybersecurity affects all businesses, including those in the staffing industry. As a result, insurance agents must offer staffing security and privacy liability insurance and understand the most common threats to their clients. Breaches of sensitive information can have far-ranging effects, and, unfortunately, hackers grow more brazen every day. With the following article, agents can learn how this cyber liability policy works, the most significant security risks, and the best approach to creating a comprehensive cyber liability insurance package for clients.
What Is Staffing Security and Privacy Liability Insurance?
Staffing agencies store a variety of personal data, from employee information and contact information for temps to sensitive data about corporate clients. If bad actors gain access to this information, your clients will need damage control, including mitigating customer impact, strengthening security, and repairing their reputation. These efforts take a lot of money, which can be especially burdensome for smaller businesses. Newer companies may also struggle with profit losses resulting from business interruption.
Staffing security and privacy liability insurance covers these expenses, allowing companies to recover from data breaches and other incidents. It can also expedite recovery by paying customers, partners, and vendors for notifications. As a result, companies can conduct business without fear of cyberattacks, privacy violations, and data breaches.
What Are Common Cyber Liability Threats?
As technology has evolved, so have hackers’ strategies to access systems. Companies must stay vigilant, which means creating risk mitigation plans for the following cyber liability threats:
- Data breaches: Improper storage of personally identifiable information or transaction records can allow criminals to steal identities.
- Employee negligence: Cybersecurity only works when everyone follows protocol. Creating weak passwords, sharing them, or storing them in insecure places allows unauthorized individuals to access sensitive material.
- Phishing and social engineering: Sometimes, cybercriminals don’t need to hack into software. Instead, they manipulate employees with official-looking emails or innocent-sounding phone calls, tricking people into offering confidential information.
- Ransomware: Increasingly, hackers take control of business systems, demanding money for a decryption key. Hackers may lock them out indefinitely if companies don’t pay, release sensitive data, or delete essential programs.
How Can You Tailor the Best Cyber Liability Policy for Your Clients?
While staffing security and privacy liability insurance can benefit every agency, specific needs vary. As a result, you should familiarize yourself with the factors impacting customer needs.
One of the most important things to consider is coverage scope. Does a particular cyber liability policy cover every risk your client faces? Does it address vulnerability specific to staffing agencies? Finally, does it bring clients into compliance with appropriate regulations? As the expert, it’s your job to help clients check all their boxes.
Staffing companies may also need the following:
- Risk assessment and mitigation
- Incident response and crisis management
- Third-party liability
Why Should Businesses Get Staffing Security and Privacy Liability Insurance?
Staffing security and privacy liability insurance can save companies a great deal of money and strife. Insurance agents like yourself can help by using your knowledge of cyber liability threats to customize policies. For best results, work with reputable carriers and stay on top of the evolving field of cybersecurity.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.