Data Risk Liability Insurance

Twenty-two percent (22%) of small businesses have experienced the loss or theft of customer or employee information, according to our recent SME study conducted by the Ponemon Institute.

Data risks are too vast to ignore. To best address data risk exposures, our bottom line message is "Do Your Best and Insure the Rest".

 

Data Risk Liability Insurance

Does your small business collect, use and/or disclose personal information? Do you operate a web site? If so, it is entirely appropriate to have insurance to defend and cover the specialty privacy and information related liability exposures that exist.

The first data theft, or ‘hacker’ or ‘cyber’ liability policies were created in the mid-1990's and continue to evolve to principally cover privacy liability risks associated with Personal Identifying Information (PII) and/or sensitive business proprietary information. Today, the risks and exposures to paper and/or electronic records loss are significant and potentially catastrophic. Having dedicated, stand-alone, specialized coverage has never been more important. The volume of data thefts, attacks, data loss, errors and accidents, compliance and notification requirements is seemingly out of control. Indeed, there is a priority focus on the privacy and security of sensitive information. In fact, in select industries and states, cyber liability insurance is being mandated and becoming a cornerstone of best practices. 

When it comes to data risks, our primary message is "Do your best, and insure the rest". We understand that protecting information against loss or theft is difficult. Because data risks will always remain, no matter how diligent your defenses, insurance presents a cost effective vehicle to transfer risk. We believe that data risk liability insurance is a fundamental need of every business in today's risk environment. 

Our programs that include Data Risk Liability Insurance, are summarized here*:

  • Limits of Liability: Up to $1,000,000 (retention of $1,000) For desired limits beyond $1,000,000, seperate underwriting is required and you should contact us or your insurance representative. 
  • Coverage is intended for any failure to protect private information in the care, custody or control of the insured or its information holder or for which the insured is legally responsible, including costs/forensic costs to investigate
  • Loss / Theft of Personal and/or Business Data/Trade Secrets
  • Failure to Disclose / Notify per Breach Notification Laws
  • Regulatory Fines and Penalties
  • Cyber Extortion
  • Privacy Liability Loss Mitigation / Event Management expenses for law/breach coach, PR, forensics, consumer notifications, and remedies for identity theft education, assistance, victim reimbursement insurance and credit/identity monitoring (sublimited to 50% of the liability limit)
  • PCI DSS Fines and Related Contractual Obligations (sublimit of $250,000)
  • Internet Media Liability covering the display of electronic content and the insured's website and to many internet related exposures, including infringement of copyright, plagiarism, theft of ideas, invasion of privacy, defamation, slander, negligent infliction of emotional distress and more

Separate risk management and protection is provided in conjunction with our Risk Mitigation Benefits. This includes our Breach Expense Protection intended for eBusiness network interruption and data reconstruction. See the Technology Module and Incident Response tabs for more details^.

*Please Note: The above information provides summary details only. Certain terms, limitations and exclusions apply. Coverage may not be available in all states and is not available in NY. Upon your purchase, please read your policy carefully. If you have questions, please contact your insurance agent or broker, or contact us at BIZLock Insurance Services.

^Breach Expense Protection benefits are separate and distinct from the protections provided in the Data Risk Liability Insurance policy