How Secure Is Your Customer’s Information?
The answer to this question for most business owners would be: “Of course my customers data is secure, my computer or network has a firewall and/or the latest anti-virus software.”
Over the last couple years many retailers have experienced data breaches, which have compromised the identity of millions of Americans. Privacy breaches can occur from unauthorized access, the physical taking and mysterious disappearance of personal information. Whether the breach is accidental or intentional, the end result is bad.
Think your standard General Liability policy has got you covered? – Think again!
Most states including Delaware have laws addressing computer security breaches and violations may include notifications to all customers in the data base, credit file monitoring for victims, forensic investigations by security experts and possible fine or legal action by the States Attorney General.
With the average cost of $194.00 per customer in a data base you can see that a security breach can be very costly and time consuming. Business’s need to consider purchasing a Cyber Liability or Data Breach Liability policy to address this financial exposure a data breach creates. Following are coverage’s provided by these type of policies:
- Limits available: $500,000 and $1,000,000
- Retentions available: range from $2,500 to $25,000; are scaled based on revenues.
- Full limit for breach notification costs.
- Full limit for computer forensics.
- Duty to Defend policy
- Coverage for breach of contract claims, including those under a payment card processing or service provider agreement.
Insured’s in the medical or healthcare fields are covered by a special healthcare privacy form, with wording taken directly from HIPAA HITECH to help ensure coverage triggers properly.
Coverage for regulatory actions, including investigations by the FTC or state attorneys general, as well as coverage for civil penalties (where allowed), and compensatory awards such as consumer redress funds.
$25,000 of PCI Fines coverage included at no additional premium.
If you should have any questions concerning this important insurance coverage please contact Andy Cousins at 800-770-0304 or firstname.lastname@example.org.