PRIVACY LIABILITY AKA CYBER LIABILITY OR DATA SECURITY

Privacy liability is an evolving exposure for any business which handles, transmits, stores, or processes “personally identifiable information”. Regulations and litigation trends over the past 10 years have created an environment with strict requirements for an organization’s behavior in the event of a data breach. The potential for financial damages, reputational harm, lost business income and regulatory action is now an everyday risk for most business entities across all industries.

WHAT KINDS OF BUSINESSES NEED PRIVACY COVERAGE?

All industries that use electronic information have a data security exposure. In the event of a breach your business may be required to provide notification to affected individuals, alert regulatory agencies, provide credit restoration or credit monitoring services to affected individuals, etc. In addition, your business will be tasked with public relations communications to protect your reputation, and IT expenses to conduct forensic examination of the breach source and determine what information was compromised. The 3rd party exposure includes regulatory fines and penalties, class action suits, cyber extortion, restitution to individuals after identity theft, expenses to remedy credit card industry standards, and defense from suits from clients or competitors.

Relying on a general liability policy to offer indemnification may result in your uninsured or under-insured loss as these types of claims are most likely not covered by a standard commercial general liability policy.

Not all carriers offer the same coverage, and depending on your industry, coverage would be tailored to your needs.

Cyber Liability 1 page quick indication appl

Tags: cyber liability insurance, data insurance, data security, information security, internet security, privacy insurance, privacy policy insurance

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