Industry sources estimate that there were up to 820 data breaches affecting 125 million records in 2011. If you think traditional insurance policies will protect you, think again.
Read more to find out about ASR’s Privacy and Data Breach insurance capabilities.
A climate of rapid technological innovation has brought vast improvements to businesses worldwide; however, increased dependency and interconnectivity for organizations has also introduced significant risks in the form of viruses, data breaches, loss of income and reputation, intellectual property, infringement, and violation of privacy laws. The following are some of the more common risks facing businesses today:
Cyber Liability to Third Parties - Entities that provide content or information on a website can be exposed to lawsuits such as copyright, defamation and infringement of intellectual property.
Network Security - Organizations that collect customer data or other sensitive data have a legal obligation to protect and safeguard this information within their networks. In the event of a security breach which results in data being compromised, companies face significant and costly obligations due to data protection standards, including fines and penalties imposed by regulatory bodies.
Business Interruption & Loss of Data - Increased dependency and interconnectivity between organizations has introduced significant risks from interruption of online services or access to systems. The result could be significant loss of income following a breach or network event.
While these incidents continue to grow, it is likely that these new and evolving risks are NOT covered by existing insurance policies. American Special Risk’s Privacy & Data Security Insurance Program addresses these risks on a customized basis to ensure you are properly protected.
- Disparagement or harm to reputation or character including defamation, libel, slander, emotional distress, and mental anguish.
- Invasion, infringement or interference with the right to privacy including false light, public disclosure of private facts, intrusion or commercial appropriation of name or likeness.
- Plagiarism, piracy or misappropriation of ideas in connection with the Internet.
- Infringement of copyright, domain name, title, slogan, trademark or service mark.
- Liability due to failure to prevent unauthorized access including hacker attacks, computer viruses and theft of electronic data. Includes employees who are not directors or officers.
- Liability for Internet content for which you are responsible.
- Inability of an authorized third party to gain access to services including denial of service.
- Negligent and inadvertent transmission of any computer virus.
- Regulatory Defense and Penalties - Privacy regulatory defense and penalties expenses imposed by federal, state, or local regulatory bodies e.g. HIPAA, GLB, California Database Protection Act, Federal Fair Credit Reporting Act.
- Customer notification expenses including legal expenses, public relations expenses, and related expenses. Includes notification of up to two million individuals.
- Credit monitoring for notified individuals.
- Loss of income and additional expenses following a breach or network event.
Coverages are available for both first party and third party risks and can be purchased either on a combined basis or individually.
If your business uses technology to handle important information such as credit/debit card data, accounting data, customer records, or employee information, call ASR today to find out more and how we can help protect your company.