The Importance of Cyber-Liability Insurance for Tax Professionals
According to a new survey conducted of 633 tax professionals, 55% of respondents said their organizations had not purchased a cyber-liability insurance policy or coverage, while only 15% said they had and 30% said they were unsure. The survey was conducted at the annual conference of the National Association of Tax Professionals in Phoenix.
Tax professionals face risks such as computer viruses, data theft, identity theft, and other cyber-crimes. For the most part, tax professionals are somewhat familiar with risks associated with cyber incidents, which is what makes these survey results so surprising. According to survey participants, 1% said that they were not concerned about cyber incidents in their business or organization.
Cyber-liability should be a top priority for these organizations, as tax professionals handle sensitive customer data such as social security numbers and bank account information. The damage that can be done when their customers’ personal information is stolen is vast, and as the keeper of such information, it is your client’s organization that will be on the line for losses they experience as a result of the breach.
Cyber-liability insurance will protect your client’s business from the losses associated with hackers stealing client data, and can also protect against:
- Copyright Infringement claims
- Damages that result from a virus
- Accusations of slander
- Various other problems introduced by digital business platforms
Tax professionals have special considerations when it comes to securing digital information, but all industries and companies face the risk of a privacy or network security breach. There is a lot to be aware of when it comes to Privacy and Network Security. In addition to potential third-party liability damages, your client could be at risk for direct costs from a number of sources, including fines and penalties assessed as a result of regulatory action. PLRisk Advisors’ Privacy & Network Security coverage is the solution to helping your customers manage and protect against risk. Contact us today for more information. (855) 403-5982