Never Surrender Opportunity for Security

CEO Letter

“Never surrender opportunity for security.” —Branch Rickey

Independent agents wear many hats — you deal with the everyday struggles of operating a business, the marketing and recruiting aspects of building sustainable growth, and also servicing ongoing client needs. One thing that can be particularly difficult about being an independent agent is managing multiple relationships, with both client and carrier, that are sometimes in conflict with each other. With all of those roles demanding your immediate attention, it can be difficult to find time to manage the security of your clients’ information. In this business we handle so much sensitive personal and private financial consumer information that we have to be vigilant about staying on top of cyber security. It is important to always be cognizant of potential threats in order to preserve your clients’ security and that of your book of business. Making sure you are aware of these risks now will save you time and money in the long run.

Last year, was the largest year on record for data breaches, according to a year-end report from RPS Insurance, with five of the top 10 biggest breaches of all time occurring in 2017. We live in a time where we hear daily, about social media and other online sources harvesting data from internet users — so it’s not hard to see how hackers can easily breach online data from a variety of sources. Think it can’t happen to you? It can. Here are some additional important statistics for small business owners:

• Only 14 percent of small businesses rate their ability to mitigate cyber risks, vulnerabilities and attacks as highly effective.*
• 60 percent of small companies go out of business within six months of a cyber attack.*
• 48 percent of data security breaches are caused by acts of malicious intent. Human error or system failure account for the rest.*

Your agency’s size doesn’t matter – everyone is a viable target, and it takes hackers only seconds to steal entire databases of information, opening you and your agency to liability, and causing a huge headache for the people who have given you their trust. That trust would be irreparably damaged and likely cost your clients.

We’ve devoted this issue of Smart Choice Magazine to continue building knowledge awareness around cyber security. Some of our carrier partners like RPS Insurance and CalSurance have a wealth of material about cyber security which they’ve shared in their articles “Cyber Insurance: A Guide for Retailers,” and “Identity Theft and Cyber Security,” respectively. Knowledge is power. This holds true in any aspect of business, and doing your part to safeguard against potential attacks is no exception. Build your understanding of internet threats now and be proactive versus reactive in the wake of an attack. 

By advocating for the safety of your clients’ private information, you are reducing liability and providing security to your own agency. 

 *https://smallbiztrends.com/2017/01/cyber-security-statistics-small-business.html