Data Breach Insurance
Protecting the personal information of your customers presents a challenge to businesses of all sizes. We hear about the big businesses that suffer a data breach but smaller businesses are often easier targets.
Whether you store electronic data or paper copies of records, it’s important to ensure that information is secure. Equally important is having an insurance policy in the event of a data breach.
A data breach occurs when there is an incident in which sensitive, protected or confidential data is copied, transmitted, viewed, stolen or used by an individual unauthorized to do so.
Many data breach policies provide coverage for:
- Access to professionals who can help you comply with regulatory requirements, provide guidance on how to help prevent a data breach and handle a breach crisis if one occurs
- Expenses related to notifying individuals who are affected by the data breach as well as advertising expense to help restore confidence in your business
- In most states, coverage is also available for defense and liability expenses in the event you're sued because of a breach
- Damage to or corruption of the insured's electronic data
- Income reimbursement during period of restoration
- Cyber extortion threats and cyber terrorism
- Payment Card Industry (PCI) fines and penalties
Talk to our brokers about the importance of data breach insurance as well as resources to help you protect your data.
For each record that is compromised, the average cost to the business owner is nearly $200. This includes cost to notify customers, hotline support, credit monitoring reports, forensic experts, discounts to customers, legal expenses and more.