What is Data Breach Coverage?

With the trend toward paperless data filing, nearly all companies and healthcare practices that handle or store any personally identifiable information, customer and patient OR employee data are at risk for a data breach. The possibility is especially high for businesses that routinely deal with credit cards, patient medical records, Social Security numbers and other sensitive information  Interesting Facts About Data Breach
  • Data Breach is the fastest growing crime in America
  • The average cost to mitigate damages is approximately $120-$300 per compromised record!
  • Public relations costs to help in recovery from this type of crime are rarely considered until after the fact
  • Customers and employees may require ongoing credit monitoring as peace of mind that they are safe
  • A notification mailing will be required
  • A breach can cause an interruption in business, the requirement to assess liability, obtain legal defense, potential monetary settlements, and a need for crisis management
  • Because data breach occurrences are becoming more common, there are now regulatory requirements that need to be satisfied when a breach occurs. The cost to satisfy these requirements can be significant to any business owner. The Hartford feels so strongly about the small business owner’s responsibility to their employees and customers, that they have developed data breach coverage like no other I have seen so far. For those business owners who take their employee and customer relationships seriously, you may be interested in the coverage that The Hartford offers. If your line of business is within The Hartford’s underwriting appetite, with their Data Breach coverage you could have: • The peace of mind of knowing you have the insurance coverage needed to help pay for certain response expenses necessary to comply with notification regulations and to help avoid potential lawsuits that might be brought against you as the result of a breach; and • The confidence that services are available to help mitigate any damage to your business’ reputation and help quickly restore any loss of customer, patient or employee trust.
Should you be thinking about Data Breach coverage for your business? If you store employee’s and/or customer’s personal information the answer is YES!

THE HARTFORD DATA BREACH COVERAGE OFFERS COVERAGE FOR:

First Party Response expenses including but not limited to:

Legal & Forensic Services

Crisis Management/Public Relations

Notification Expenses

Good Faith Advertising Expenses

 

Third Party Defense & Liability expenses (including defense costs)

In addition, with The Hartford’s Data Breach coverage, you will have access to a proprietary breach preparedness web site. This site, powered by Identity Theft 911®, a leader in identity management and theft resolution services, offers a host of pre and post-breach services and resources.

To purchase insurance with data breach coverage, contact me at 877-257-1652 OR mluckner@orrandassociates.com to discuss. To learn more about data breach and the importance for insurance coverage, here are some valuable links:  About identity theft and data breaches  http://www.privacyrights.org/Identity-Theft-Data-Breaches  Identity theft info for The Hartford policy holders  http://www.idt911.com/ The Hartford’s video link http://hartford.http.internapcdn.net/hartford_vitalstream_com/OHC%20Video/ohc_3.html

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