Coverage for data-breach risk has become the key insurance coverage for the digtial age.
The reason. of course, is that the digital storage and transfer of data is a critical part of doing business today for a huge-and constantly growing- swath of industry sectors. Insurance companies and agencies, banks, asset managers, retailers, doctors offices and any type of business that maintains client files with private financial data are at risk. The security breach at Sony in the spring of 2011 reminds us that anyone is susceptible.
And it’s no just hackers, viruses and phishing emails that put data at risk. Security breaches can just as easily be caused by loss of misplace files or even mishandled waste. A breach that results in a client’s data being stolen and used in a damaging way can lead to substantial third-party liability claims-and government penalties.
A report for Lloyd’s of London and technology company HP earlier this year warned that businesses becoming more reliant on techonolgy will face more complex and damaging digial attacks as sophisticated criminals quickly adapt their methods to steal from, disrupt and spy on businesses.
Larger companies have been attuned to the risks for some time now and have started to buy policies. It is the small and midsize businesses that need to start purchasing this type of coverage for they may find it difficult to recover from a data breach which can easily approach $100,000 for defense and mitigation.
Premiums for this coverage are still relatively inexpensive considering the potential exposure. Mountain Insurance Brokers represents several carriers that offer this coverage at a very affordable coverage. Do not continue to put your business and yourself at risk. Contact Kevin Krupka at (720)974-1702 to determine if you business is a risk.