Be Prepared not
just Preventative.

Cyber criminals are targeting tax professional systems to access taxpayer data.

There is much talk addressing consumer concerns, but little is said about protecting the tax professional from the impact of a data breach. A study sponsored by IBM and conducted by the Ponemon Institute released in June 2016 found the average cost of a data breach is $221 per lost or stolen record. At this rate, a tax preparation business with 350 client records can expect to incur a cost of $77,350.

A data breach within your tax business will set off a flurry of spending on technology resources, legal advice and required client notifications. It can generate regulatory and payment card industry fines and penalties, client and vendor litigation and legal defense expenses. In addition, the distraction will serve as a significant disruption to your business and result in lost revenue. If you are not prepared, this combination of events can destroy your business.

Understanding the Risks

What is the Impact of a Data Breach:

Sooner or later you will likely be confronted with the challenge of a data breach.
Are you prepared? The aftermath will involve the following:

  • Bring in Computer Experts to assess and remedy the breach

    You will incur the expense of securing expert computer assistance to:

    • Identify & define the full nature of the breach to understand the impact of the response to regulators, vendors and clients
    • Remove and or repair the Hackers code
    • Block an ongoing intrusion
    • Enhance your systems protection
  • Consult legal counsel to understand your regulatory requirements

    Significant expenses associated with consulting legal counsel with the expertise to advise on the following:

    • Regulatory: What are the federal and state requirements
    • Contractual: What are your requirements under agreements with merchant services providers, banks, and third party vendors.
  • Notifying customers, clients & regulators
    • Certain states require that notification be given to all clients
    • Notices must be drafted to meet unique requirements in each regulatory jurisdiction, resulting in unique notice for each jurisdiction
    • Notices must be drafted in a manner to remain defensible
    • It is costly to send out the notifications
    • Additional resources required to respond to an influx of client inquiries after notices go out
  • Fines & Penalties you may be required to pay
    • Federal & State regulatory fines & penalties
    • Payment Card Industry Fines and penalties under merchant services agreements
    • Client fines and or penalties under third party contracts
  • Legal Defense Expenses
    • Regulatory: negotiating fines and penalties assessed
    • Contractual: defending claims brought by the payment card services industry, banks and third party vendors
    • Consumer: defending claims brought by impacted clients
  • Lost profits - Business interruption

    Expense of securing expert computer assistance to:

    • Management & staff will be distracted from core business activities to resolve the data breach
    • Business will suffer and earnings will be negatively impacted

Understanding The Coverage

A Complete Solution | only $300.00/yr

We are offering a comprehensive cyber liability protection solution for professional tax preparers.
Our solution provides:

Expert Assistance

Access to Beazley’s dedicated breach response team as well as professional computer forensics and legal experts to assist you through the resolution

Notification Services

Preparation and distribution of client notices and the provision of credit monitoring services (provided for up to 2,500 clients at no additional cost)

Call Center Services

Access to call center services to assist in handling client inquiries

Breach Coverages

Up to $100,000 to cover breach response services including legal services, forensics, public relations, call center services and crisis management.

Legal Coverages

Up to $100,000 to cover legal fees, regulatory defense and certain fines & penalties arising out of Information Security & Privacy Liability claims and proceedings.

Business Coverages

Up to $100,000 for Business Interruption loss as a result of a cyber attack. Includes lost profits and expenses associated with cyber extortion (ransomware)

This insurance is subject to th terms, definitions, conditions, exclusions, and limitations of the master policy. See the policy form for more information. These insurance benefits are underwritten by Syndicates 623/2623 at Lloyd’s (Beazley) and issued to the American Advantage Association (AAA). Coverage is available in the US only on a Surplus Lines basis through licensed surplus lines brokers. The surplus lines broker affiliated with this offer is Trupoint Marketing, LLC. Beazley does not intend the AAA master policy or certificates to be a solicitation of any other surplus lines risk. Coverage is not available in the states of IN & NY. This insurance is available to members of AAA. Beazley does not provide nor is affiliated with the non-Beazley benefits provided as part of membership in AAA. To speak with an agent, call 855-406-5527.

Beazley pioneered the concept of data breach insurance that focuses first and foremost on response. Beazley does more of it than anybody else. To date Beazley has helped more than 4,500 clients manage data breaches swiftly and successfully. Beazley can’t guarantee your cyber security; no one can. But Beazley can put you in control of your response. Beazley is unique among insurers in having a dedicated business unit, Beazley Breach Response (BBR) Services, that focuses exclusively on helping clients manage data breaches successfully.

For over 30 years, the American Advantage Association has been committed to working with member companies in identifying enhanced administrative processes, staying current on regulatory issues, developing customer affinity solutions and product enhancements.

With over 10,000 tax professional members, we have a keen understanding of the issues impacting the professional tax preparation industry. In response to the growing number of data breach incidents, warnings issued by the IRS and concerns expressed by our professional tax preparer members, we developed this cyber security solution specifically for professional tax preparers.

Even if you do not experience a data breach, as an Organization Member of the American Advantage Association, your tax business will receive access to free and discounted small business legal services through Legal Club of America. These services address nearly any legal business matter you may confront.

When a breach occurs

Timeline of Events

An effective data breach response involves a carefully coordinated set of decisions. Beazley breach response experts – who have helped clients handle over 4,500 data breaches – will be with you every step of the way.

  • EXPERT TEAM

    Notify BBR Services at bbr.claims@beazley.com

  • MANAGE

    Beazley’s dedicated in-house unit focused on collaborating with clients to help manage breaches successfully, contacts your organization. BBR Services helps you select expert data breach counsel and, if needed, a forensic expert to investigate and determine the scope of the breach.

  • GUIDANCE

    Your organization, with advice from legal counsel and continuing guidance from BBR Services, decides whether and to what extent notification is required and considers potential credit or identity monitoring solutions. BBR Services secures a notification service provider to mail out notifications to meet applicable regulatory deadlines.

  • FACILITATE

    You approve notification letters for mailing and BBR Services will facilitate a call center service provider to handle calls on your behalf. Q&A scripts for call center employees are prepared.

  • MONITORING

    You approve notification letters for mailing and BBR Services will facilitate a call center service provider to handle calls on your behalf. Q&A scripts for call center employees are prepared.

  • REPORTS

    Affected individuals receive their notification letters and may enroll in offered monitoring services.

GET PROTECTED NOW

BEAZLEY BREACH RESPONSE: A COMPREHENSIVE SERVICE.

Sign Up Now

How did we get here

Building the Solution

In response to the growing number of data breach incidents, warnings issued by the IRS and concerns expressed by our over 10,000 professional tax preparer members, the American Advantage Association set out to offer a cyber security solution designed specifically for professional tax preparers. We sought only the best providers and selected Beazley in part because of their A+ rating and their leading position in the cyber liability insurance space.

Beazley has helped clients handle more than 4,500 data breaches since the launch of Beazley Breach Response in 2009 and is the only insurer with a dedicated in-house team focusing exclusively on helping clients handle data breaches. Beazley’s BBR Services team coordinates the expert forensic, legal, notification and credit monitoring services that clients need to satisfy all legal requirements and maintain customer confidence. Beazley was awarded the 2016 Cyber Risk Insurer Team of the Year in 2016 and the 2015 and 2016 Cyber Risk Event Response Team of the Year by Advisen, the leading analytics provider in the commercial/specialty risk insurance space worldwide.

MULTIMEDIA LIABILITY COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will pay:

  • Damages which an insured becomes legally obligated to pay; and
  • Defense costs,resulting from a claim for an actual or alleged multimedia peril, provided that:
    • Such claim is first made against the insured during the POLICY period;
    • The insured reports such claim in writing to the Company no later than sixty (60) days after the claim is first made against the insured; and
    • The multimedia peril takes place or first commences on or after the prior acts date.

SECURITY AND PRIVACY LIABILITY COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will pay:

  • Damages which an insured becomes legally obligated to pay; and
  • Defense costs, resulting from a claim for an actual or alleged security and privacy wrongful act, provided that:
    • Such claim is first made against the insured during the POLICY period;
    • The insured reports such claim in writing to the Company no later than sixty (60) days after the claim is first made against the insured; and
    • The security and privacy wrongful act takes place or first commences on or after the prior acts date.

PRIVACY REGULATORY DEFENSE AND PENALTIES COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will pay:

  • Regulatory fines and penalties and/or any regulatory compensatory award which an insured becomes legally obligated to pay; and
  • Defense costs, directly resulting from a claim for an actual or alleged security breach or privacy breach, provided that:
    • Such claim is first made against the insured during the POLICY period;
    • The insured reports such claim in writing to the Company no later than sixty (60) days after the claim is first made against the insured; and
    • The security breach or privacy breach takes place or first commences on or after the prior acts date.

PRIVACY BREACH RESPONSE COSTS, NOTIFICATION EXPENSES, AND CUSTOMER SUPPORT AND CREDIT MONITORING EXPENSES COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will pay reasonable privacy breach response costs, notification expenses, and/or customer support and credit monitoring expenses which you incur during the POLICY period as a direct result of an adverse media report, security breach or privacy breach, provided that:

  • The adverse media report, security breach or privacy breach takes place or first commences on or after the prior acts date; and
  • You report the adverse media report, security breach or privacy breach in writing to the Company during the POLICY period and no later than 60 days after the date an insured first discovers the adverse media report, security breach or privacy breach.

BRANDGUARD COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will reimburse you for your provable and ascertainable brand loss, which you sustain during the period of indemnity, but after the waiting period, as a direct result of an adverse media report or notification, provided that:

  • The adverse media report or notification results from a privacy breach or security breach that takes place or first commences on or after the prior acts date;
  • You report the brand loss in writing to the Company during the POLICY period and no later than 60 days after the date you first discover the actual or potential brand loss; and
  • You provide clear evidence that the brand loss directly resulted from the adverse media report or notification.

NETWORK ASSET PROTECTION COVERAGE

  • Loss of Digital Assests
  • Subject to the limits of liability and retention specified in the Schedule, the Company will reimburse you for digital assets loss and/or special expenses which you incur during the POLICY period as a direct result of damage, alteration, corruption, distortion, theft, misuse, or destruction of digital assets, provided that:

    • Such damage, alteration, corruption, distortion, theft, misuse, or destruction of digital assets is directly caused by a covered cause of loss takes place or first commences on or after the prior acts date;
    • You report the covered cause of loss in writing to the Company during the POLICY period and no later than 60 days after the date an insured first discovers the covered cause of loss; and
    • You provide clear evidence that the digital assets loss and/or special expenses directly resulted from the covered cause of loss.
    • The Company will pay digital assets loss and/or special expenses for a period of up to twelve (12) months following the discovery of the damage, alteration, corruption, distortion, theft, misuse, or destruction of digital assets.

  • Non-Physical Business Interruption and Extra Expense
  • Subject to the limits of liability and retention specified in the Schedule, the Company will reimburse you for income loss, interruption expenses and/or special expenses which you incur during the period of restoration, but after the waiting period, as a direct result of a total or partial interruption, degradation in service or failure of an insured computer system, provided that:

    • Such total or partial interruption, degradation in service or failure of the insured computer system is directly caused by a covered cause of loss that takes place or first commences on or after the prior acts date;
    • You report the covered cause of loss in writing to the Company during the POLICY period and no later than 60 days after the date an insured first discovers the covered cause of loss; and
    • You provide clear evidence that the income loss, interruption expenses and/or special expenses directly resulted from the covered cause of loss.

CYBER EXTORTION COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will reimburse you for cyber extortion expenses and/or cyber extortion monies that you pay as a direct result of a cyber extortion threat, including a demand for cyber extortion monies, provided that:

  • Such cyber extortion threat is first made against an insured on or after the prior acts date;
  • You report the cyber extortion threat in writing to the Company during the POLICY period and no later than 60 days after the date the cyber extortion threat is made against an insured; and
  • You provide clear evidence that the cyber extortion expenses and/or cyber extortion monies directly resulted from the cyber extortion threat.
  • Cyber extortion expenses and/or cyber extortion monies shall not be paid without the Company’s prior consultation and written authorization. You must make every reasonable effort to notify local law enforcement authorities and the Federal Bureau of Investigation, or similar equivalent foreign agency, before surrendering any cyber extortion monies in response to a cyber extortion threat.

CYBER TERRORISM COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will reimburse you for income loss, interruption expenses, and/or special expenses which you incur during the period of restoration, but after the waiting period, as a direct result of a total or partial interruption, degradation in service, or failure of an insured computer system, provided that:

  • Such total or partial interruption, degradation in service, or failure of the insured computer system is directly caused by an act of cyber terrorism that takes place or first commences on or after the prior acts date;
  • You report the act of cyber terrorism in writing to the Company during the POLICY period and no later than 60 days after the date an insured first discovers the act of cyber terrorism; and
  • You provide clear evidence that the income loss, interruption expenses and/or special expenses directly resulted from the act of cyber terrorism.

PCI DSS ASSESSMENT COVERAGE

Subject to the limits of liability and retention specified in the Schedule, the Company will pay:

  • A PCI DSS assessment which an insured becomes legally obligated to pay; and
  • Defense costs, Resulting from a claim for an actual or alleged security breach or privacy breach, provided that:
  • Such claim is first made against the insured during the POLICY period;
  • The insured reports the claim in writing to the Company no later than sixty (60) days after the claim is first made against the insured; and
  • The security breach or privacy breach takes places or first commences on or after the prior acts date.

Free Legal Services*

The following nine services are available at no charge from your plan attorney.

  • Unlimited initial phone consultations during business hours for new legal matters
  • Attorney will review as many as 5 independent documents each quarter. These include business documents, contracts, signed or unsigned, up to 10 pages each.
  • Initial telephone calls made on behalf of your business if deemed appropriate by your plan attorney (two per month). Follow up calls are made at the guaranteed low hourly rate.
  • Initial letters written on behalf of your business if deemed appropriate by your plan attorney. Three per month for new subjects; follow up letters are written at the guaranteed low hourly rate.
  • Initial collection letters are limited to 10 per quarter. More than 10, and any follow up letters, are written at the guaranteed low hourly rate or at the contingency fee percentage, depending upon what you and your plan attorney decide.
  • One on one consultations for each new legal matter. Thirty minute time limit per subject matter. Time over the 30 minutes per subject will be at the guaranteed low hourly rate.
  • Registered Agent for your business in the state in which you are incorporated as well as other states where you do business.

*In certain situations, attorney liability may require plan attorneys to ask for a retainer from the member prior to providing some of the free legal services.

Guaranteed Low Hourly Rates*

Plan attorneys have contracted to charge no more than $125.00 per hour, or 40% off their usual and customary hourly rate, whichever is greater, for legal care that goes beyond the free and discounted services.

Retainers*

In the case of extended legal care, plan attorneys may ask you for a retainer. Any retainer sought will be computed by multiplying the number of hours a plan attorney believes a case will take, by the appropriate discounted hourly plan rate. For instance, 10 hours x $125.00 = a retainer of $1,250. Any unused portion of the retainer will be returned to the member.

*Court costs, filing fees and time charged for travel to and from any courts are additional.

Contingency Fee Discounts*

Attorneys often work on a contingency fee basis on such cases as personal injury and collections. This fee is usually expressed as a percentage of the amount collected or awarded. In collection matters, your attorney will accept 18% if the case is settled before formal court proceedings begin. After proceedings begin, the fee is 27%. On all other contingency matters there is a 10% discount on the lower of either the state maximum or the attorney’s standard rate.

*Court costs, filing fees and time charged for travel to and from any courts are additional.

We are sorry

Based on the answers to these questions, you do not qualify for this coverage.

Eligibility

This program has been developed for professional tax preparers and is not intended for accounting practices performing comprehensive financial services beyond professional tax preparation. Before proceeding, please respond to the following questions:

Yes No
Yes No
Yes No
Am I Eligibile

Eligibility

This program is intended to cover 1 Electronic Filing Identification Number (EFIN) per enrolled business. A separate enrollment is required for each EFIN.

This program is not available to:

  • Businesses earning more than $5 million per year
  • Businesses who have filed an insurance claim for a data breach or have knowledge of a breach of their data in the past 5 years
  • Businesses who are not using security software such as anti-virus and anti-malware software

Please click below to confirm these do not apply to your business. (misrepresentations will result in a denial of protection and services)

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