Today, any health club that does business without cyber liability insurance coverage is has an invisible weakness. If that weakness becomes exposed as the result of a security breach it could be devastating. We live in a digital world where crimes are committed in cyber-space. Cyber Liability coverage protects your club from breaches in security of private client information and inadvertent HIPAA violations. Cyber Liability coverage also extends to the personal information of your employees.
Here a few examples of what Cyber Liability Insurance covers and how it can protect your club:
- Suppose member information was on one of your employees’ laptops that was stolen from the gym. The laptop contained member’s names, addresses, and social security numbers, or bank account information, dates of birth, cell phone numbers and medical information on your members. This information is then sold to a hacker or an identity thief.
- A Trojan horse attacks your billing company and you are unable to collect dues. In the meantime, your cash flow stops and you need to hire experts to find the bug, fix it, and work with your bank’s Internet processing until the problem is fixed. Can you operate 40-60 days without your billing check? Many clubs cannot afford to pay their bills without the cash flow of their billing check even for a couple of weeks.
- Your club sponsors a golf tournament or outdoor fitness challenge and you inadvertently use a logo or a name of a manufacturer or product on your website without their permission…and get sued.
- Your third party collection company had a breach of security and one of their employees was able to download all of your client information requiring all of your members to cancel their credit cards…have them reissued and then sign new agreements for payment withdrawal costing you thousands of dollars…not to mention claims from your members and cancellations of memberships.
Your club’s fiscal existence can be compromised by just one cyber liability claim. However, the cost to obtain cyber liability coverage is relatively inexpensive. Show your strength and put your club in a position of power. Ask your insurance company about cyber liability or give us a call to discuss the options for your club.
