Cyber Insurance for Credit Unions in Illinois

Learn more about our cyber insurance coverages for credit unions and get a quote from one of our knowledgeable independent agents. Providing coverage to credit unions across Illinois, Indiana, and other states.

What is cyber insurance? 

Illinois credit unions are far from immune to the persistent threat of cybercrimes. In fact, they may even be more tempting targets than larger banks that have more resources to defend against cyber threats. Cyber insurance may help shield credit unions shield themselves from the fallout of covered cyber threats.

Cyber insurance offers specialized liability coverage for a variety of online crimes and data breaches. Policies could cover expenses if customer accounts and Social Security numbers are compromised.

Which credit unions in Illinois need cyber liability insurance? 

Virtually all credit unions in Illinois should have cyber liability insurance in place. Not fully insuring could be financially devastating to a union and its members if there’s a major breach.

Moreover, there are many situations where coverage could be needed. It’s not just traditional attacks, although those are usually included among covered events. Some examples of situations where coverage might apply include:

• The servers at headquarters are successfully hacked, exposing members’ Social Security and account numbers.
• A successful ransomware attack results in operations halting, data being compromised, and potentially a large payment 
• An employee unwittingly gives criminals access to servers by falling for a phishing scam
• An employee accidentally emails confidential information to a large list of members
• A director’s laptop computer is stolen from their vehicle as they’re driving between branch locations.

What protections are afforded for ransomware attacks and these other incidents can vary from one policy to the next. An insurance agent whos specializes in cyber liability can help credit unions make sure they find a policy that has robust protections.

What cyber liability insurance coverages should credit unions look for?

Cyber liability insurance for credit unions can encompass various coverages to safeguard against diverse online and digital risks:

• Employee Privacy Liability Coverage: May cover situations where employees’ personal data, including Social Security numbers or banking information, is compromised or exposed.
• Network Security Privacy Liability Coverage: May cover incidents involving data breaches that result in violations of federal or state laws, including non-compliance with regulations like the GLBA (Gramm-Leach-Bliley Act).
• Electronic Media Coverage: May cover claims that originate from issues with published online marketing content, such as trademark infringement, plagiarism, or defamation.

Do cyber liability policies cover third-party data breaches?

Should a vendor, cloud service provider or other third party have a data breach, it’s possible that some may try to hold the credit union liable. Resulting legal costs can be expensive even if the credit union is ultimately exonerated.

Select cyber liability policies offer coverage for third-party breaches. If this is a major concern, an experienced agent can help credit unions check what policies offer such protection.

What types of claims do cyber liability policies cover? 

Cyber liability policies might cover a range of claims, depending on their specific terms and conditions. Typically, they offer protection against risks such as:

• Theft of digital data by employees
• Security breaches of a network
• Online attacks by hackers
• Phishing attempts by scammers
• Accidental data breaches (i.e. human error)

Should a covered claim occur, a policy might help pay for affected members’ credit monitoring, lost data recover efforts and lost revenue.

How much do credit unions pay for cyber liability?

Premiums for cyber liability vary, depending on a credit union’s member count, online services, IT security measures and other factors. Shopping around with an independent insurance agent is an easy way to find out how much different companies will charge for cyber liability premiums.

Where can Illinois credit unions get cyber insurance? 

For assistance in obtaining cyber insurance in Illinois, reach out to the independent agents at L.A. Blanchette Insurance. Our agents have worked with many credit unions, and we can help you find a cyber liability policy that’ll protect your credit union well.