Data Breach Insurance

There has been no shortage of data breaches recently.   Therefore data breach insurance seems to be extremely important.  Data breach response costs accumulate very quickly. Target’s December 2013 data breach response costs were reported to be $148M.

Cyber insurance assists in curbing the heavy costs of data breach by offering coverage.   It takes care of Public Relations and forensics investigations.   This insurance deals with breach notification mailings, Furthermore cyber insurance deals with credit monitoring, regulatory defense, penalties and fines.

 Business interests also rely on you to safeguard their personal information. Data Breach Insurance is therefore necessary.  Your business reputation is endangered when sensitive data is divulged.

The Hartford offers Data Breach insurance.  Breach coverage can therefore equip you with connections to professionals.   They are able to assist you.   Furthermore professionals  help you adhere to regulatory prerequisites.  Professionals give advice on how to assist in the prevention of a data intervention.  The Hartford also manages a breach dilemma if one should occur.

When a breach occurs:

The Hartford Data Breach Insurance policy conditions guarantee that response expense coverage is available.   This  ensures that confidence in your business or practice is restored rapidly.   In most states, defences and liability expenses are also covered if you are prosecuted because of a breach exposure.

The costs associated with a breach are covered. Examples are  notification to individuals, public relations management, litigation and liability expenses . You will be advised by professionals. They will  assist you with the applicable rules and regulations to avoid or manage civil litigation and other penalties.

Hiscox Brokers offer US Privacy and Data Breach Insurance which is designed to cover privacy, data and network exposures. This policy provides adjustable indemnification for costs pertaining to breach feedback.

Coverage:  Data Breach Insurance:

  • For both the first-party and third-party accountabilities.
  • For defense expenses and indemnity.
  • Provides full limits for contentious costs.
  • Grants full limits for credit or identity safeguard expenses.
  • Covers both heedlessness and breach of contract demands.
  • Provides you with complimentary pre-loss breach intervention services.
  • Provides a minimum hourly covered business interruption loss amount also as a benefit.

Cyber Data Risk Managers LLC provide a sampling of annual premiums in different sectors of the economy:

  • Healthcare IT Provider: Revenue: $1.2 million, Limit: $5 million ~ Premium: $15,900
  • Healthcare SaaS Provider (Startup): Revenue: $1.5 million, Limit: $5 million ~ Premium: $30,420
  • Electronic Health Records Company: Revenue: $5 million, Limit: $1 million ~ Premium: $8,010
  • Data Hosting Provider (Startup):  Revenue: $200K, Limit: $1 million ~ Premium: $2,750

Most owners of small technology businesses have a general idea of the data security measures. This involves establishing and updating passwords, using firewalls, maintaining Data Breach Insurance, and encrypting sensitive data.

But what happens when it comes time to get rid of your old equipment?

 Failing to follow through on data disposal, however, can lead directly to a costly data breach. Data breach insurance can protect you in this instance.

Technorati reports that criminal organisations will pay hundreds of dollars for trashed hard drives.  They extract information stored on them. This data can be used to steal identities, commit fraud and particularly bribe victims.

If you are not disposing of your company equipment in a responsible manner, your customers’ information could be exposed to embezzlement.  Therefore this  means you could be liable for any compensation involved. Data Breach Insurance protects you.

How to properly Dispose of Computer Equipment

Erase valuable information. If you plan to leave the hard drive unscathed for future use, be sure to get rid of any important information because this could compromise your business or its clients. You can do this by degaussing (i. e. passing hard drives through a strong magnet). You could therefore overwrite existing data with new information

Destroy your hard drives. If you do not intend for the hard drive to be re-used, you can eradicate the possibility of data being recovered from the hard drive.    Shredders are the most high tech way to do this.   However pounding with a rock or drilling a hole through the center will also accomplish the goal.

Double check the company you hire to perform the recycling. Ensure that they have certification from the EPA (Environmental Protection Agency).  Furthermore certification guarantees that recyclers meet both environmental standards and efficiently destroy sensitive information.

Have the work done on site. If you really want to make sure safety standards are met for destroying your company’s equipment, employ a company that will bring portable shredders into your office.   You can thus watch the whole destruction process.