Are you protected?
If your company collects any of the personally identifiable information or personal health information listed below and you haven’t purchased Data Breach insurance, then you are jeopardizing your business’s future.
- credit card information
- banking information
- date of birth
- medical records
- social security number
A data breach can be financially devastating and it happens to more and more businesses every year. It doesn’t matter how large or small your company is; a data breach can happen to any business. Unfortunately, your General Liability, Commercial Property, or Commercial Crime policies do not provide the adequate coverage to protect your business in the event of a data breach.
Hacking isn’t the only cause of data breaches
A data breach is the unintentional release of your customer’s private information which is then distributed or used by an unauthorized individual. A data breach in your company’s data base can take place in many different ways. We normally think of data breaches being caused by a computer hacker, but data can be leaked from incorrect delivery or disposal of paper files, theft or loss of a laptop or smart phone, or illegal access to your customer database by a disgruntled or former employee.
Because these types of incident are happening more and more often, a stand-alone insurance policy has been created to help business owners survive a data breach. Recovering from a corporate data breach is not cheap. Companies that have experienced a breach may incur civil liabilities, governmental fines, data restoration expenses, notification expenses, and credit monitoring expenses.
This new e-Commerce or cyber insurance covers a wide range of Internet-based risks that all businesses face daily:
Website Media Liability covers for errors or misleading statements posted on a website that may infringe on another’s copyright, trademark, or service mark, libel, and invasion of privacy.
Security Breach covers the costs associated with a data breach, some of which are;
- alerting affected customers of the breach
- performing a criminal examination to determine the data accessed
- launching a call center to handle customers’ breach-related questions
- implementing credit monitoring services for affected customers
- employing a public relations firm to help restore your company’s brand and business reputation
- paying charges estimated by governmental agencies.
Programming Errors and Omissions covers your business if a computer system transmits a virus to your customers, as well as negligence if performing tech services for others.
Repair Electronic Data covers the cost of replacing any data or computer programs damaged by a virus or virtual attack.
Lost Business Income covers any income that is lost due to your website or other computer systems being down.
If you do not have data breach coverage added to your commercial business policy then you could be setting yourself up for financial ruin. Keeping your customers’ private information confidential should be priority. Make sure that your business is protected, too! Don’t be one of the thousands of unprotected businesses being hacked each year. Learn more about Cyber Insurance by calling Sadler insurance at 800-622-7370.
Source: ISO Products Perspective, An Agent’s Primer For Data Breaches, by Shawn E. Dougherty.