Data is everywhere now. More businesses are finding themselves in possession of client or customer data, from addresses to banking information, medical records, and more. As a business owner, you have a legal responsibility to keep that data safe. Data Compromise Coverage ’ll invest in security measures, of course, but laptops can be stolen, hackers are learning new tricks all the time, and records can be disposed of improperly.
What Is Data Compromise Coverage?
Data compromise coverage is an optional coverage that may be added to a business insurance policy. This coverage, sometimes called data breach liability insurance, helps reimburse your business for certain expenses after a data breach. Some covered expenses may include:
- Informational materials for affected customers or employees
- Credit monitoring services for affected customers or employees
- Access to an identity theft help line if customer or employee information is stolen
- Your business’s legal fees after a data breach
Data compromise coverage does not typically pay to restore your company’s computers or systems affected by a data breach.
Do I need data compromise coverage for my business?
Most states now require companies to notify individuals if a data breach may have compromised their personal information, according to the Federal Trade Commission (FTC). Compromised information could include Social Security numbers, driver’s license or passport numbers, financial information (such as account numbers) or digital signatures or passwords, says the nonprofit Privacy Rights Clearinghouse. Federal laws also require most institutions to notify individuals if their personal health information has been compromised, says the FTC.
If your business owners policy includes data compromise coverage, it may help pay for expenses related to notifying affected individuals after a data breach.
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How can I help prevent a data breach at my business?
At many businesses, not all employees have business needs that require access to secure data. One way to help prevent a data breach is to restrict employee access to sensitive customer or employee data, says the FTC. You may also want to consider safeguarding secure data with a password. Finally, implement a policy that requires employees to use strong computer passwords to make hacking more difficult for data thieves.
If a data breach occurs at your business despite your best efforts, data compromise coverage can help you respond to the crisis. To learn more about this coverage, and other coverage options available for your business, get in touch with a local agent.
What is covered?
Data Compromise Endorsement covers reimbursement of expenses after a “personal data compromise” including:
- Legal Review
- Forensic IT Review
- Notification letters
- Public Relations – media and reputation management
- Named Malware Regulatory and PCI Fines and Penalties
- 3rd Party Defense and Liability (including Named Malware)
The coverage also includes services to affected individuals:
- Help line/call center
- Credit report
- Credit monitoring
- Identity restoration case management
Why do I need it?
Data Compromise coverage is easily added onto your existing policy, and your agent might not need additional information to see if you qualify. Premiums are typically low, so you will have access to up to $50,000 in coverage, plus many added services that help not only your business, but affected individuals.
Including Data Compromise coverage in your comprehensive insurance policy is one of many ways Selective can help you find the unique coverage you need.