Imagine one of your staffing firm clients suffering a massive data breach — sensitive employee records stolen, business operations frozen by ransomware. Without the right insurance coverage, they’re left vulnerable. As an insurance agent, you can help ensure this nightmare scenario never happens by recommending the appropriate staffing insurance solutions, including cyber liability and crime coverage.
Types of Cyberattacks in 2024
Cybercriminals are constantly evolving their tactics, with the United States accounting for 46% of global cyberattacks. Below are some key threats staffing firms face:
- Phishing: Phishing is a common attack where hackers use deceptive emails or messages to trick employees into sharing sensitive information.
- Ransomware: Ransomware is a form of malware that locks firms out of their own data until a ransom is paid.
- Distributed denial of service: These attacks overwhelm a website or network with traffic, rendering services unavailable.
- Insider threats: These threats occur when employees with access to company systems engage in malicious actions, intentionally compromising the company’s security.
Why Staffing Firms Are Prime Targets for Cyber Threats
Staffing firms handle large volumes of sensitive employee and client data, including personal information, financial records, and confidential business contracts. It’s what makes them attractive targets for cybercriminals looking to exploit vulnerabilities.
As an insurance agent, you can help your clients identify these vulnerabilities. For instance, many staffing agencies don’t have the same level of cybersecurity defenses as larger organizations, leaving them exposed to phishing scams or internal fraud.
By highlighting these risks, you can help your clients make more informed decisions about insurance coverage and risk management.
How Crime Coverage Complements Cyber Liability Insurance
One of the most effective ways to protect staffing firms is by combining crime coverage with cyber liability insurance.
While cyber liability insurance covers external threats like hacking and data breaches, crime coverage focuses on internal threats such as employee theft and embezzlement.
For example, a staffing firm might face a ransomware attack one month and later discover an employee has been funneling funds through fraudulent invoices. Having both cyber liability and crime coverage ensures the firm’s protection from both external and internal risks.
By advising your clients to have both insurance, you can help them secure a comprehensive protection plan that covers all possible angles.
Helping Clients Implement Cyber Risk Reduction Strategies
While insurance coverage is essential, prevention is just as important. As an insurance agent, you can recommend that your staffing clients implement practical cybersecurity measures to minimize their risks. Some steps include:
- Secure data storage: Ensure that sensitive data is encrypted and securely stored.
- Employee training: Suggest that they regularly educate their staff on recognizing phishing scams and other cyber threats.
- Two-factor authentication): Add an extra layer of security to prevent unauthorized access to systems.
Helping your clients adopt these strategies reduces their risk and qualifies them for lower insurance premiums.
Comprehensive Cyber Insurance Solutions for Your Staffing Clients
The increasing cyber threats mean that staffing firms need more than just a standard insurance policy. They need a comprehensive plan that addresses all potential risks.
Be sure to recommend both crime coverage and cyber liability insurance to ensure your staffing clients’ protection.
Get in touch with us today to learn more about how we can help you provide the best staffing insurance solutions to protect your clients from the unexpected.
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 are 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.