Data Breach Insurance and Your Company

You cannot pick up a newspaper or turn on the television or radio without hearing the news that yet another large company which positively everyone uses has “suffered a breach.”

Last year alone, there were almost 200 hacks of payment systems which are used by hotels, restaurants, and retailers. In 2013, Target had 40 million debit and credit card numbers stolen from their computers.

And it’s not just retail shopping which has been affected. In the first few months of 2014, millions of consumers had their personal, banking, and/or credit information lifted from Apple, Kaiser Permanente, the California Department of Motor Vehicles,  national credit agency Experian,

and even Veterans of Foreign Wars of the United States.

If it can happen to these huge companies, you’d better believe it could happen to you!

It is important that you talk to your licensed insurance professional about data breach insurance, often called cyber liability insurance. Data breach insurance covers you in the event of such events as unauthorized access or use of data, loss of data, whether malicious or accidental, denial of service attacks, cyber extortion, or disclosure of confidential data.

Covered losses may include the investigation and forensic costs to figure out how the breach happened, and what was exposed. It can also cover damage to your company’s reputation, the costs of notifying those who are affected, the costs associated with monitoring credit going forward, lost business, and attorney fees, settlements or judgements, and court costs.

Again, talk to your insurance professional to ensure that all of your data breach risks are covered.

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