Lynda ArtesaniLegal Accountant and Data Migration Specialist at The Proper Trust

Cyber Insurance and FTC Regulations

18 Jul 2023 · 1 min

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Cyber insurance costs for accountants have skyrocketed due to ransomware attacks, and insurers now deny claims if you weren't following FTC compliance rules when a breach happens. That means the full cost falls on you.

Chapters

Most firms have cyber insurance today. But if you watch what's happened with cyber insurance, number one, cyber insurance starting, I think, maybe a year or 2 ago became the most expensive part of business insurance for accountants. The market forces, ransomware, all this stuff has pushed that to that point. It's not going to get any cheaper. Number 2, if they have cyber insurance and they aren't doing what they say they're doing, and they're not compliant with the FTC regulations and so forth, the insurance isn't going to pay out. Oh, you got ransomware or a bunch of client information leaked out, but you weren't following the guidelines. Therefore, that's not our fault as an insurer, that's your fault as a business. You're on your own.