Every single business in America has private information they have been entrusted to protect. This information can belong to employees or customers and can range from social security and credit card numbers to medical records and business trade secrets.An emerging business concern is the liability that may arise when private or confidential information is put at risk due to failure of computer security or a wrongful release or disclosure of information by the insured, the insured’s employee or another third party the insured has a relationship with.
Currently 45 states, including Florida, have passed laws creating requirements for a business in the event of an information breach. Many times, failing to comply with these laws can result in financial penalties of substantial amounts. Important questions to reduce the risk of significant penalties are:
- Do you know what to do in the event of a breach?
- Is your company protected from the liability they may suffer?
- Do you have the financial and logistical capability to comply with breach notice laws?
A new type of insurance coverage can provide protection against these risks.
Coverage Highlights:
- Defense Costs and Indemnity Payments for a Security Failure or Privacy Event
- Security Failure: a failure or violation of the security of a Computer System that results in or fails to mitigate any unauthorized access, unauthorized use, denial of service, attack or receipt or transmission of a malicious code
- Privacy Event: any failure to protect Confidential Information that results in an identity theft or other wrongful emulation of the identity of an individual or corporation
- Defense Costs and Fines and Penalties for a Regulatory Action brought by state, local or industry regulators (Defense costs included in form; fines and penalties coverage available by endorsement)
- Notification Costs and Credit Monitoring for individuals affected by a breach
- Costs to investigate a breach to determine the cause & origin
- Costs to restore an electronic database
- Costs for a PR firm to advise how to minimize harm and restore public confidence
- Contractual fines and penalties assessed by card associations (VISA, MasterCard, etc), (available by endorsement)
Indications for pricing can be provided based on a revenue figure.
For more information on Cyber Liability, contact:
Lisa DeKoeyer
Account Executive
Tel: 954.267.8542
Email: ldekoeyer@seitlin.com
