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Equifax Breach and Insurance Implications for Minnesota Banks
As we are all well aware, Equifax, a major credit reporting agency, has suffered a data breach that has potentially impacted over 140 million Americans. Because Equifax is one of three major reporting agencies that provide services to thousands of financial institutions across the country, many community banks are concerned how this event may impact them and their banking operations from an insurance perspective.
Midwest Bankers Insurance Services (MBIS) – a jointly owned subsidiary of the MBA and the Wisconsin Bankers Association (endorsed by the North Dakota Bankers Association) – was formed to provide education and risk management for these complex situations, and our representatives are here to be of assistance whenever you need us.
As part of our risk management and insurance placement efforts on behalf of community banks, we have seen many community banks that have Cyber Liability including First Party Expense coverage as part of their overall Professional Liability package of coverages. Please be aware that, to the extent that your bank incurs legal liability, necessary costs to respond to this issue (e.g., legal expenses to gain advice on advisable responses to the breach, etc.), some of these expenses may be covered by your Cyber Liability policy. While being aware that all terms, conditions, and limitations of your coverage will apply, your insurance company and their internal or outsourced vendors can be an excellent source of assistance.
While the Equifax data breach is still developing, banks may consider putting their insurance company on notice of a potential claim so that you can begin to take advantage of the resources they have made available to you through the purchase of your policy. Keep in mind that these resources are usually subject to a retention.
We will continue to keep you apprised of how this matter may affect your Cyber Liability and other insurance coverages as it develops. For any questions, please contact Jeff Otteson,
, or 608-217-5219 or Adam Dawson,