Cyber liability insurance slowly but surely grows in Louisiana

Both business owners and insurers in the South are slowly learning the importance of cyber liability insurance

Cyber

By Lyle Adriano

Cyber liability insurance, considered the fastest-growing type of insurance in America, may not be too well-known in Louisiana, but both insurers and businesses in the region are slowly recognizing just how important the product is, reported Greater Baton Rouge Business Report.

Louisiana Commissioner of Insurance Jim Donelon recently said that there are three types of businesses: Those that have experienced a data breach and know about it, those that have been breached but do not realize it, and those who have not been breached yet but will.

Donelon then urged business owners to implement cyber security measures as needed to protect themselves from data breaches and the like. He also warned that such security features do not necessarily eliminate the risk of cyber-attacks, and that businesses should consider purchasing cyber insurance.

Although cyber liability insurance clearly plays an important role, some insurers remain skeptical about the product since it can be difficult to accurately gauge the exposure of a client and to put a price on that risk, said consulting firm PricewaterhouseCoopers. It does not help that there is not much publicly available data on the scale and financial impact of cyber-attacks; that the nature of the threat constantly changes; that breaches can remain undetected for long periods of time.

Independent Insurance Agents & Brokers of Louisiana CEO Jeff Albright warned that cyberattack coverage typically is not included in general liability or property policies. Even policies tailored for business owners do not have “meaningful” cyber liability coverage since the risk varies from business to business, he said.

Despite the challenges, several insurers in Louisiana have offered cyber liability insurance in the hopes of raising awareness on the dangers of cyber-attacks.

1st Team Insurance Agency owner Harold Williams, whose agency offers cyber insurance, said that businesses should keep in mind not only the value of their information, but also the possible PR disaster that could hit them following a cyber-attack.

“If you have customers’ personal information, you will want that protected,” Williams said. “Nobody will want to do business with you if they think their personal information is not protected.”

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