Earlier this year, New York City-based staffing agency Clarity bought cyber-insurance for the first time. This spring it added more coverage.

“We were actually hearing about it from our clients,” said Elizabeth Wade, Clarity’s operations manager. “They were asking us about it and in order to prevent being behind the eight ball we felt like we really wanted to be proactive and get the insurance ’cause we knew it was something that was important to our clients, and then it was important to us as well.”

With a staff of 30, Clarity was looking to protect the information it takes from the clients it places, like their Social Security numbers and dates of birth. The initial coverage it bought from insurer CNA covered any legal costs and the costs of lost business that would come with a breach. This spring it added coverage for credit monitoring if its client data are hacked.

Clarity is one of a growing number of small businesses buying cyber-insurance, and one of the reasons sales of this product are skyrocketing. Read the whole story here