Data Breach Coverage for Business
Data Breach and Cyber Liability is one of the newer liability coverages and claims types that are infiltrating small businesses. A "data breach" is the interception of your clients information such as: personally identifiable info (socials, birth-dates, health information). Other types of sensitive information that can be breached are credit card info, home or e-mail addresses, or theft of other information.
There are different methods of data theft such as hackers, rogue employees, or lack of proper security features on the systems. Ironically, data breach could even just be the accidental LOSS of data from even an owner or employee: misplaced harddrive, lost computer, etc. The public still has to be notified that their information "could" be compromised.
Data Breach/Cyber Liability can be a proactive and reactive liability coverage ~ in the case of an employee losing information or accidentally transmitting the wrong e-mail to a mass distribution list, the policy would pay for notifying clients, credit check monitoring, and legal consultation or defense. In a case of the breach occuring and the customer experiencing stolen identity, financial manipulation, credit card fraud, etc., the policy will pay for damages and defense for the business owner.
Data Breach can damage the business owners reputation, take time out of work to have to focus on cleaning up the data breach, many hours of legal counsel, and the daunting task of not only keeping customers informed but having a program set up to keep tabs on the group of consumers who were affected.
Rest easier tonight by purchasing Data Breach/Cyber Liability…. unfortunately, the hackers are experts in their own field of study whereas business owners are approaching uncharted territory by trying to stand up against a plethora of exposures that are not the business owners' expertise. Trust the insurance of "data breach" to be your expert!