Commercial Deposit Insurance Agency Introduces Innovative Protection for Business Bank Accounts

(PRWEB) March 22, 2013

Commercial Deposit Insurance Agency (CDIA), today announced that its innovative new insurance policy for protecting business bank accounts against cyber theft is now available to businesses and non-profits. CDIA's product, backed by two AM Best "A" rated insurance companies, is the first to offer coverage that will replace cash stolen from commercial accounts by cyber thieves in a matter of days. This is critical for small organizations that often manage cash flow closely and cannot afford to lose the money in their bank accounts.

The product was developed by Marc Kramer, President of CDIA and a serial entrepreneur, and Dick Peterson, Executive Chairman of the company who came out of retirement after serving as President and CEO of the 6th largest insurance brokerage firm in the world, Minet. By law, as stated in the Federal Regulation issued by the Consumer Financial Protection Bureau, banks are not required to insure commercial account against theft or fraud like they are personal accounts. This creates a significant risk for small businesses, trusts, estates and non-profits that CDIA is unique able to limit.

"We are excited to finally release commercial deposit insurance to the public after years developing the policy, looking for the right partners, and speaking with business owners who have suffered at the hands of cyber thieves," said Mr. Kramer. “As a small business owner myself, I know how much I depend on the cash in my corporate account to keep my business running and my employees and vendors paid. I couldn’t imagine not being able to get that money back if it were stolen by hackers. For small businesses and non-profits, this insurance is a no-brainer, and I’m really proud that CDIA will be the first company to offer these policies."

CDIA’s insurance policies are currently available to small businesses and non-profits that have less than 10 employees in Pennsylvania, New Jersey, and Delaware. Policies cost as little as $100 for $10,000 worth of insurance and as much as $50,000 for $175. CDIA will reimburse the owner up to the limit covered in a matter of days.

"Having worked in the insurance industry for over 40 years, even I was shocked to learn that such a risk existed for commercial deposit accounts,” said Mr. Peterson. “The good news is that a solution could be developed with a little innovation and ingenuity so that small organizations could be confident that if cyber theft happened to them, they would be protected. Banks have some of the most sophisticated security systems the world have ever seen, but thieves are persistent so business owners need to protect themselves as well. For less than the cost of cable for a month, the decision to cover an account for a year is really a no-brainer."

Cyber theft from bank accounts is on the rise and many predict significant threats in 2013. In fact, recent studies have shown that reported cases of cyber theft have tripled from 2009 - 2012. Other trends, such as those listed below, make it easier than ever for hackers to steal passwords and other private information.

   •      Proliferation of online accounts, passwords, and personal information
   •     Increase in cloud-based software and shared access to those accounts
   •     Mobile work on unsecured devices or networks

CDIA’s commercial deposit insurance policies can be purchased online at http://www.cdiaus.com. Policies begin at $100 annually for $10,000 in coverage and go up to $175 annually for $50,000 in coverage. Eligibility requirements are available on a website and organizations must fill out a small application to gain coverage.

ABOUT CDIA
Commercial Deposit Insurance Agency (CDIA) is the first company to introduce commercial deposit insurance policies to cover the cyber theft of cash from business bank accounts. CDIA has exclusive partnerships with two AM Best "A" rated insurance companies to provide the insurance to small businesses and non-profits. According to the Federal Regulation issued by the Consumer Financial Protection Bureau, banks are only required to insure consumer bank accounts, leaving millions of commercial accounts at risk for a cyber attack. For a nominal yearly fee, CDIA insures commercial accounts up to $50,000. Please visit http://www.cdiaus.com to learn more.

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