According to multiple cyber risk research reports, the average cost of a cyber-security breach is estimated at nearly 4 million dollars with actual claims ranging up to $76 million. Legal expenses and settlement fees make up the majority of costs accrued from a data breach, so having high compensation rates can ease the financial burden. While the exact fiscal impact of cybercrime on the American economy is hard to pinpoint, a study backed by the Center for Strategic and International Studies indicates that at least 100 billion dollars are lost annually to hackers and cyber criminals.
With the rising trend of E-mortgage and leasing options the real-estate industry faces increasing risk exposures to cyber security threats. The extensive amount of personal client data stored and transmitted digitally presents a huge liability risk exposures for New Jersey Realtors and leasing agents that are often excluded from traditional Trenton NJ General Liability Insurance policies. Digital data is not classified as tangible company property and therefore is exclusions form professional property liability coverage. This is essentially leaving you fully responsible for the financial implications of a cyber-security breach.
The American Bar Association recently released a list of the most essential cyber security practices. The tips listed that obtaining comprehensive Trenton NJ Cyber Liability Insurance is the most essential cyber security step for any New Jersey operation. Comprehensive cyber liability protection includes high coverage reimbursement rates and the inclusions of prior acts, wild virus and unencrypted devices.
Other cyber security precautions include:
- Conducting proper background checks on new agents and partners to ensure that they have no history of cybercrime or fraud.
- Cyber security education and certification can greatly reduce the risks that real-estate professionals face of mishandling sensitive documents and information.
- Preemptive security breach planning is also a high priority. This includes obtaining the proper legal counsel and developing an incident response plan to minimize the damage.
- Regular security monitoring, testing and reporting are also highly advised.
- Data encryption tactics and other security software should be utilized and updated regularly. By using many different types of cyber security programming you can better protect your private data against a wider variety of exposures.
At Tri-State insurance Agency, our Trenton NJ Cyber Liability Insurance policies can be designed to cover legal defense costs, expenses related to notifying victims, costs of regulatory investigations or forensic reviews of the incident, and damages for losses your event causes to others. We can help you assess your cyber security weaknesses as a New Jersey real-estate professional and offer Trenton NJ Risk Management Services to all our clients. Call us today at (888) 990-0526 for more information about how we can help you better protect your endeavors.