New York Data Breach Insurance
Data Breach Response Expense & Data Breach Liability Protection
Big companies aren't the only victim of data breaches. Approximately 31% of reported data breaches occur in companies with less than 100 employees. Most data breaches can be prevented if companies follow some basic security measures. On average companies pay $60 per compromised record in indirect costs.*
What Is A Data Breach?
"Data Breach" is defined as loss, theft or accidental release or accidental publication of personally identifiable information. For example: Social Security numbers, credit card numbers, bank account numbers, drivers license numbers, patient history and medication, and more.
How Does A Data Breach Happen?
Data breach can occur several different ways. Most common is unauthorized access to the information. Sometimes by a hacker, former employee, or vendor. Stolen or lost paper files, computers, disks, cd's, usb drives, stolen credit card information, or simply oversight or error by staff are some other ways this can happen to you.
Who Needs Data Breach Insurance?
Anyone who handles private customer, patient, business or employee information. Some key businesses are doctors, hospitals, retailers, wholesalers, lawyers, landlords, condo associations, and even insurance companies. If you have access to or store private information of others than you need to be aware of and concerned about a potential exposure.
What Can You Do?
First you need to implement and take proper precautions to prevent a data breach from occurring. There are legal requirements by State that provide guidelines on how this private information needs to be acquired and handled. Develop a plan on what to do if a data breach occurs.
Tanner Insurance Agency Inc are aware of this potential exposure and aware of the cost that can be involved in enacting a data breach response plan should one occur. Many carriers are now offering Data Breach Response Expenses coverage and are automatically adding this coverage to the commercial package policy for certain classes of business, lie retailers for example, for no additional charge. This coverage could include up to $10,000 for the expenses incurred.
The coverage also comes with free data risk management solutions, to support us in providing business owners like you with data breach coverage. As an educational resource a data security website will also be available to you. The website will provide additional tips and best practices that will help you protect sensitive information. It also includes information regarding notification laws and regulations, and other resources.
Download a free White Paper: Privacy Exposures & Risk Reduction Strategies for small organizations in the free reports section of our website or by clicking HERE.
Cyber Insurance - Similar Options For Tech Savvy Companies In New York
Lastly, some carriers are now offering Cyber Liability Insurance in addition to Data Breach coverage. This is a separate coverage and must be added by endorsement in most cases, if offered. It will pay money that you become legally obligated to pay as damages because of a personal data breach. The insurance carrier will hire an attorney to protect and defend you against any personal data breach law suit that may result up to the limits of insurance shown on the declaration page.
There may be some confusion determining the difference between Data Breach Insurance and Cyber Insurance. Data Breach and data breach response insurance is described above. Some say that a Cyber Liability policy is the same as data breach. When I think of Cyber Insurance I think of the computer professional or web designer. The same is true for Cyber Liability Insurance, that is more for the computer professional, computer repair person, or someone working with technology.
Please contact Tanner Insurance Agency Inc to find out more information about data breach response expense protection and/or data breach liability protection, or to see if it is already included on your current policy. We also can help you determine if you need Data Breach Insurance or Cyber Liability Insurance.
*Verizon 2013 Data Breach Investigations Report and Ponemon 2013 Cost of Data Breach Study: Global Analysis