Cyber risk has become a national conversation as high profile data breaches at major retailers and banks have forced organizations across multiple industries to take a hard look at their potential vulnerabilities in network security and privacy liability. Most experts agree that certain industries such as Healthcare, Retail and Financial Services are at higher risk than others since they collect and store a vast amount of sensitive data.
The real estate industry is usually not categorized as “high risk” but that could change. Real estate professionals routinely obtain, store and transmit personally identifiable information, including social
security numbers and financial records. This data is often collected from credit reports, rental applications, leases and rental agreements.
Collecting personal information imposes legal duties on the real estate industry to safeguard it. Should it be compromised, real estate professionals could find themselves in the same situation as those retailers and banks who experienced mass data breaches. Legal fees, IT forensics expenses, notification, credit monitoring costs and investigations from government authorities would be
expected. The financial impact and reputational damage could be significant.
Data breach costs studied in detail in a 2014 worldwide research report by the Ponemon Institute found that the average cost paid for each compromised record rose to $145 per record. This was
a 9% increase compared to Ponemon’s 2013 study.* HUB Cyber Risk Professionals are equipped to consult on security, privacy and other associated risks. Our knowledgeable and experienced consultants focus on network security and privacy liability daily and can help you understand your exposures as well as develop an insurance program to address them.
HUB International has access to many A++ rated insurance carriers that offer risk transfer insurance products for cyber liability, network risk, media liability, technology errors and omissions, that allows you to get a highly tailored insurance program at competitive rates.
Contact a HUB Cyber Risk Professional to develop a cyber security plan that protects your business from a data breach.
*Ponemon 2014 Cost of data Breach Study: Global Analysis