MINNEAPOLIS--(BUSINESS WIRE)--Marsh & McLennan Agency LLC (MMA) is launching a focused effort to increase awareness of the cyber and data risks facing small and midsize employers. Acting on findings from a nationwide survey of 582 small and midsize employers conducted late last year, MMA issued a report outlining the survey results, and its sales and service teams are bringing information on this increasingly prevalent risk to clients and prospective clients.
MMA’s 2014 Cyber & Data Security Risk Survey Report found that, while 80% of respondents have five or more cyber risks — including processing credit cards, holding past or present employee records, and accessing banking information — 67% have not purchased cyber liability insurance. Nearly half (49%) of those without insurance in place cite lack of understanding of how the insurance works as a reason why they have not invested in a policy.
“Data risk is a developing risk, and it’s new to many of the insurance purchasers we work with. Many think only large, household name organizations face any substantial danger,” said Dan Hanson, director of management liability for Marsh & McLennan Agency’s Minneapolis operations. “The reality is that data risk should be considered as potentially damaging as other disasters, like fire, flood, or tornado. In this day and age, purchasing a cyber liability insurance policy can be like buying a data disaster plan for your business that includes financial backing.”
MMA is leading and planning workshops and Webinars through its operations across the country to help small and midsize employers understand the real danger they face and some of the protections available to them. It is also publishing information and articles on its Web sites and working closely with insurance companies to find ways to make purchasing these policies easy and affordable.
In fact, MMA can now deliver a cyber liability insurance pricing indication to most employers by obtaining only a handful of data points, and the average cost of a policy for a $10 million organization is about $5,000. Purchasing such a policy could be a prudent decision. This is especially true for smaller employers who are typically the least able to recover from a data breach, which costs, on average, $201 per compromised record, according to the Ponemon Institute’s 2014 Cost of Data Breach Study: United States.
“Companies are expected to promptly, effectively, and proactively respond to a cyber-incident or data breach — not only to safeguard their operations, but also to protect the confidential information of individuals and customers who may be affected,” said Hanson. “Cyber insurance can go a long way in protecting a company’s bottom line, but it is just one part of a larger risk management program that companies should put in place. Our focus now is to help employers understand the issue so they can make the best decisions for their organizations.”
Small and midsize employers wishing to learn more about insurance for data security and cyber risks they may face are urged to contact their local Marsh & McLennan Agency office or representative, or visit www.rjfagencies.com/CyberLiability.
About Marsh & McLennan Agency
Marsh & McLennan Agency LLC, a subsidiary of Marsh LLC, was established in 2008 to meet the needs of midsize businesses in the US. MMA operates autonomously from Marsh to offer commercial property, casualty, personal lines, and employee benefits to clients across the U.S. More information is at www.rjfagencies.com.
