Paychex Introduces Cyber Liability Protection

Paychex , a provider of integrated human capital management solutions for payroll, HR, benefits, and insurance administration services, is now making cyber liability protection available to its clients through Paychex Insurance Agency and AXIS Insurance Company. The policy helps business owners mitigate the potential financial impact of data breaches, hackers, ransomware, and online banking fraud by assisting with costs involved in the response and recovery after an attack, up to specified policy limits.

With access to 24/7 crisis management and a top cybersecurity law firm, subscribers get coverage for:

• Privacy regulation liability – to help offset potential fines or penalties from state and federal agencies if it’s determined that a business failed to adequately protect personally identifiable information (PII)
• Forensic investigation – to identify the source of a cyberattack and where existing security systems may have failed
• Litigation – to help pay for legal defense, even if allegations are groundless, false, or fraudulent
• Ransomware and social engineering attacks – to recover from instances of cyber extortion or fraudulent transfer instructions
• Business interruption – to provide reimbursement of reasonably expected lost net profits and data recovery costs (Included only with the $1,000,000 policy option.)

“Cyberattacks present a growing threat to businesses of all sizes, not just large corporations. Cybersecurity insurance can offer peace of mind and be particularly critical for businesses with fewer than 1,000 employees, 60% of which fail within six months of a cyberattack due to a lack of resources to offset the breach. – John Gibson, SVP of service at Paychex.

Bottom Line: Paychex serves approximately 670,000 payroll clients as of May 31, 2019 across more than 100 locations in the US and Europe.