Nick LaPalomento: Hey everybody. Thanks for joining us today here on another Tech Talk. We’re here at Brady, Chapman, Holland [and Associates] and I’m speaking with Chris Coburn.

Aldridge utilizes Brady, Chapman, Holland [and Associates] for our insurance and, specifically today, we want to talk about cybersecurity insurance.

So, I think for a lot of people—they probably don’t really know what cybersecurity insurance is. So, let’s maybe start there. Can you describe for me what it is and really who it’s for?

Chris Coburn: I relate it to things like flood insurance and things that people don’t necessarily think about outside of typical insurance policies.

If you have lots of employees, um, their personal information can be taken from the company. There’s a potential lawsuit there that a cyber liability policy would pay for. Um, if you have customers and you’re collecting their data, even worse. Because then you have a customer who has 300 employees and through that line, they hack your company which in turn hacks your customers, which in turn hacks their customers and it goes on and goes on. And the expense cost of handling a situation like that is ridiculous.

Nick: Everything’s in QuickBooks, everything is online, everything is in the cloud. So, now there’s this extra factor that I don’t think a lot of people consider. And so they still think, “Well, I’m still a small mom and pop shop. I don’t really need that.”

Chris: I think those days are gone, quite honestly. I think, um, I know everyone is using technology. They’re—they may not think they are because, “Hey, we’re just a small construction company, you know, we don’t have that big of an exposure. We don’t keep any records.” I would challenge them on that.

Uh, I think everyone right now has a cell phone and it’s not a flip phone anymore. Now, everyone does emails through phone. Everyone gets on the internet. Everyone has some sort of contact list, database list that they carry around with them all the time. Not even a laptop. We’re not even talking about—and laptops are huge out there and people are carrying those around—but most people work from an iPhone.

So, if they’re utilizing that for business, I would challenge them that they have a cyber liability risk out there.

Nick: Is it worthwhile for a company whose—maybe they don’t have an IT staff, maybe they’ve just got an internal person who is in charge of it. Um, should they be looking at also considering a managed services provider who can take care of those security things?

Chris: I truly believe that you need both. You have to have risk management and you need to have insurance as well.

Um, y’all aren’t ever going to guarantee that if you use us, you’re never going to be hacked. You’re going to put as many systems in place as you can to prevent that from happening. But if it does happen, here’s the insurance piece that’ll help you get restored.

Nick: What’s the average claim for maybe these small to medium-sized businesses?

Chris: Most claims start off in the $200,000 to $500,000 and that’s before any—that’s on the light end. Um, but then you’ve seen the major claims where it’s, you know, $2 to $3 to $4 million and people getting hit.

Nick: And these are small to medium-sized businesses, we’re not necessarily talking about Disney.

Chris: We’re not talking about the Fortune 500 companies out there. We’re talking about small to medium-sized businesses here in Houston.

Nick: I don’t think it’s a question anymore of do you need cyber insurance. It’s like, why don’t you have it?

Chris: That’s a good point and it should be something that’s fairly standard just like the general liability and the worker’s comp. You’re not going to move into a building you own and not insure it from burning down.

How capable are you able to recover from a $250,000 claim that you have to spend that money on?

Nick: On average, what should companies be looking at—and sort of, it can be a broad range—for the cost of having this type of insurance?

Chris: Um, if we feel you’re doing a lot of the right things—and when I say “we feel,” I mean the insurance marketplace feels—um, and there’s some things that we can help implement ahead of time and you’re a smaller company, you can have a cyber liability policy for a few thousand dollars with limits up to $500,000 to $100,000 to $1 million if you want to build it up that much.

The criminals are getting smarter and they’re realizing that some of the high profile companies are the ones with the risk management in place. They have cyber liability policies. They have barrier, barrier and barrier that they have to get through before they can get a breach, where some of the smaller companies that have a lot of moving parts right now and haven’t considered putting those things in might be an easier target.

Nick: Well, thank you so much for tuning in today to Tech Talk. Hopefully you’ve learned a little bit more about cyber insurance and how you can protect your business from cyberthreats. If you want more information, you can visit our website at We’ve got plenty of resources there to help you out.

Thanks so much.

Chris: Thank you.

For more information about Brady, Chapman, Holland & Associates, visit their website.