As the recent Russian hacking of hundreds of thousands of home and office routers shows us, cybersecurity is a serious issue in 2018. The state of South Carolina agrees and has become the first state to pass a cybersecurity bill requiring any insurance entity in the state to create, and implement, a cybersecurity program designed to protect their business and their customers from any kind of unauthorized data breach.
The South Carolina Department of Insurance Data Security Act was signed into law by Governor Henry McMaster on May 3, 2017. The law creates rules for South Carolina insurers, agents and other licensed entities, regarding their data security, proper protocol for notification of a breach and investigations surrounding them. Under the new law affected licensees are required to report a breach within 72 hours.
While the law has officially been passed, it doesn’t actually become effective until January 1, 2019. Of course, the insurers will need time to come up and implement a plan that is compliant with these new requirements. Which is why insurers will have until June 1, 2019 to submit their plan SCDOI.
South Carolina Insurance Director Raymond G. Farmer released a statement about the new law, saying that “This sets South Carolina apart and shows we are dedicated to keeping insurance information safer…In this day where cybersecurity breaches are a real and ongoing threat it is best to take a proactive approach to protecting data before there is an issue, rather than trying to fix a breach once it has happened.”.
Cybersecurity will continue to grow as long as cyber crime continues to flourish, and that is showing no signs of slowing down. That’s why it’s important to have the right cybersecurity insurance policy for your needs! The staff at TGS Insurance are experts in their craft and are always willing to help you find the right policy for you. Visit www.tgsinsurance.com to learn more.