Bank Insurance Mistake – Cyber Insurance – Inadequate Privacy Mitigation Coverage

Obviously, I want my bank clients to have cyber liability insurance. (Some banks still don’t have the coverage!) However, it’s the second part of the cyber policy that I’m most concerned with.

If you have a data breach, you’ll have to notify your bank’s customers. Expenses in mitigating a privacy event can reach $100 to $200 per breached name. Lose three thousand names and you have just spent between $300,000 and $600,000. I see $500,000 of coverage as a minimum for all banks. Consider $1,000,000.

Several bank insurers are now expressing coverage as a number of affected people (one insurer provides coverage to notify up to 10,000,000 individuals). Your agent can get you information on your coverage and the cost of higher limits. The extra coverage is almost always worth the relatively small premiums.

Errors in Bank Cyber Liability Insurance is just another example of mistakes I see in my bank insurance reviews for banks.