While the digital age has made it incredibly easy for businesses to gather, analyze, and access information, electronic databases can also pose major liability risks. This is particularly true for companies that specialize in staffing solutions and , which often must protect sensitive, personal data for thousands of employees and multiple clients. This makes is crucial that third party providers protect themselves against data theft risks by seeking comprehensive coverage plans tailored to modern industry needs.
What Cyber Liability Insurance Can Cover
The two general categories of cyber liability insurance available today include first party and third party coverage. Third party coverage is mostly designed for IT professionals that manage network security for other businesses, and can become liable data breaches. First party policies can help staffing and vendor management services to safeguard against attacks on their own networks, computers, and other interconnected devices (including mobile phones). While individual policies may vary, first party policies can include coverage for items such as:
- Investigating and identifying source of data breach
- Public relations efforts to restore brand confidence
- Client credit monitoring for fraud detection
- Client and customer outreach
New Risks, New Solutions
From credit card and bank account numbers to Social Security information, when it comes to safeguarding personal data in the electronic age, staffing agencies have a greater responsibility than ever. Make sure your agency has adequate data protection coverage, and speak with a trusted agent today about comprehensive policy options.