How's Your Data Security?

What do Target, Home Depot, and the US Government have in common?

All of them have had their highly secured systems compromised over the past 10 years. This has resulted in unauthorized access of personal information on over a quarter of a million people. Every day another event makes the news, but did you know that other factors have a significant impact on your data security?

According to ACE Insurance Group:

• 31% of data breaches are from people within the organization, whether human error or a rogue employee;
• 25% of data breaches are the result of a network security attack;
• 20% of data breaches come from a lost or stolen device such as a laptop, USB drive or smartphone.

Do you have a Cyber/Privacy Liability exposure?

Credit and debit card numbers are not the only pieces of information that can have you on the hook for notification expenses under state and federal privacy laws.

It is true - a breach of your point-of-sale system could obligate you to notify and provide credit monitoring to all parties potentially impacted by the breach. But what other factors can put you at risk?

• Do you have employees? Personnel files are full of protected information such as driver license information, date of birth, social security number, and bank account numbers.
• Do you have laptops, smartphones, or paper files that could contain personally identifiable information? Cyber coverage often extends to cover information breached in other forms such as stolen files and mobile devices.
• Do you keep personally identifiable information on your customers, students, or patients?
• Would your business lose income if your computer system was out of commission? How much revenue would you lose if your computer system were to be down for two days? How about for a week or even longer?
• Do you depend on digital records? How would you repair and restore them if they were destroyed by a hacker?

According to The Chubb Insurance Group, the cost of notification expenses can be up to $30 per customer. Multiply that by 1,000,000 customers. In addition to the cost of notifying your customers, data breaches can damage your reputation and seriously hurt your company’s financial performance.

How Can you Protect yourselves? With Cyber Liability and Data Security Insurance.

There are a wide variety of Cyber coverage offerings available in the insurance marketplace and most companies allow you to select the coverage parts that fit your business. Coverage offerings include:

• Data Breach Liability for unauthorized disclosure of personal information
• Security Breach liability for transmission of information through a computer security failure
• Defense of regulatory proceedings due to violation of state or federal privacy laws
• PCI fines & penalties for inadequately securing credit or debit card information in accordance with the Payment Card Industry Data Security Standard (PCI DSS)
• Notification Expenses and Credit Monitoring for parties impacted by a data breach
• Extortion Expense for negotiators, extortion payments, and rewards to catch extorters
• Website liability for exposures such as slander, libel or copyright infringement through your website
• Forensic Expenses to determine where a breach came from
• Public Relations expenses to help preserve your reputation in the event of a breach

We can help you determine which coverage provides the best protection for your operations, and will provide a program that is tailor-made for your company’s digital footprint.