A data breach is the loss, theft, or accidental publication of personally identifiable information. This includes social security numbers, credit or debit card numbers, bank account numbers, drivers’ license numbers, and patient medical history.
Following a data breach, your company will be required to follow federal and state regulations to notify the impacted parties and the credit bureaus. You may also be subject to lawsuits from the customers who had their information exposed.
According to the Ponemon Institute’s Research Report, published in May of 2013, the average cost of a data breach, per customer record, is $188. If you have 5,000 customers and a company lap top, containing personally identifiable information is stolen, or a hacker gets into your system, you are looking at a potential cost of $940,000 for this breach of data.
Data Breach Insurance coverage is available to help businesses mitigate the impact of a data breach. The coverage can provide:
1. Assistance with notifying your customers and the credit bureaus to comply with federal and state requirements
2. Breach counseling services to help determine whether a breach has occurred and its severity
3. Public relations support to help restore your business’s reputation
4. Credit monitoring for impacted individuals
5. Liability and Defense coverage in the event that you are sued as a result of the data breach
If you are interested in getting more information about this valuable coverage, or to get a quote, please contact us at 410-897-9890.