Over the last several years, cyber liability coverage (for data breaches) has evolved from just insurance for information technology companies to coverage that nearly every kind of business should have if they don’t already. From retailers, banks, contractors, distributors, restaurants and medical offices, many businesses are unaware of the great date breach exposure they face. Mountain Insurance Brokers is here to help you understand your risk and provide reasonable insurance options.
Here are a few real examples of data breaches
Restaurant- customer’s credit card stolen from hacked server. 300 records stolen, cost of notification $24,000.
Contractor – lap top stolen with 100 customers personal and business information. Cost of notification $18,000. Two customers had their identities stolen and sued the contractor for $50,000.
Recent state laws require companies that have experienced a data breach to notify all customers that could be affected by the breach that their information has been compromised, even if the information hasn’t been used. In most cases, the notification also requires an option of one year credit monitoring services and a new card or account number for customer. Costs can be as much as $250 per individual breach.
Believe it or not, Colorado cyber liability insurance makes lots of sense for all companies. Here’s why:
- Many policies offer “first party” coverage–that is, they will pay you for things like business interruption, the cost of notifying customers of a breach, and even the expense of hiring a public relations firm.
- Is your website and any of your data hosted or stored in the cloud? Take a good look at your contracts: You’re still legally responsible.
Most Colorado business insurance policies do not cover computer fraud by a third party or the liability arising out of a cyber-attack. The good news is solutions are available. Make sure your crime policy has electronic crime and fraud coverage with appropriate limits. Cyber liability insurance from Mountain Insurance Brokers can be added to your program to cover the costs associated with customer notification and recovery of hacked data. If you store data, including private information on computers; use e-mail; generate revenue online; or use your computer to control production, manufacturing, or inventory, your company is at risk!
In short, any business not making an effort to protect personal private information is seriously out of step with the emerging landscape of privacy law. Mountain Insurance Brokers can provide your firm the right combination of pricing and coverage.