Data Breach Insurance: Data Compromise Coverage helps small and medium sized businesses respond to the financial burden and service obligations of a data breach.
Businesses and institutions have a responsibility to safeguard the data of clients, employees and others. Small and mid-sized companies are vulnerable to data breaches by computer hackers, thieves and dishonest employees, but data can also be lost through accidental or inadvertent release. Many businesses lack the resources to respond to a data breach effectively.
Why Should a Small or Mid-Sized Business Be Concerned About Data Breach?
More than half of small businesses throughout the United States have experienced a data breach. Yet only one-third of those businesses notified the people affected by the breach, even though the strong majority of states require that individuals be contacted when their private information is exposed.
To learn more about the data breach exposure faced by small business call our office today 513-624-0900
Data Breach Insurance Coverage Summary
Data Compromise coverage is designed to help small and mid-sized businesses investigate a data breach, notify individuals, and provide credit monitoring, case management and other services that help prevent identity theft and fraud following a breach of personal identifying information.
It pays for the following types of expenses:
1. Legal review of notification obligations
2. Help to find who was affected by the breach and how to notify them
3. Preparation of notification letters;
4. Credit monitoring for affected persons;
5. Identity restoration case management for identity theft victims
With so much personal information stored in paper files, computer networks, laptops and flash drives, the risk of a data breach is increasing. 46 states have enacted "breach notification" laws requiring a company to notify individuals when their personal, non-public information is revealed and it can cost thousands of dollars to respond. Generally, these laws mandate expedient notification “without unreasonable delay” and many statutes impose civil or criminal penalties for failure to promptly disclose. More importantly, the damage to a company’s sales and reputation depends on the actions it takes in response to a data breach.
Virtually all organizations collect and retain data about individuals. In today’s environment, a business that experiences a data breach needs to protect itself from both the cost of the response and the risk to its own reputation. The business must be able to notify all parties that were affected by the breach, effectively communicate the scope of the possible damage, and provide credit monitoring assistance and identity restoration case management to those affected by the breach.
We want to make sure our clients are covered and informed when it comes to Data Breach. Data Breach has become more evident today than ever before. Protect your confidential information today.
Call Brodbeck Porter Insurance today!
Email: bob [at] brodbeckporter [dot] com