Buy Data Breach Insurance

Data breach insurance is a type of insurance coverage that provides financial protection to organizations in the event of a data breach or cyber attack.

This insurance is designed to help organizations recover from the financial losses associated with a data breach, including costs related to customer notification, credit monitoring, public relations, and legal expenses. The coverage may also include reimbursement for losses due to loss of revenue or damage to the organization's reputation.

Data breach insurance is becoming increasingly important as cyber attacks become more frequent and sophisticated, and can help organizations prepare for the financial consequences of a breach.

The average price of a standard Data Breach Insurance policy for small businesses ranges from $27 to $59 per month based on location, number of customers, coverage needed, data security in place and more.

Many companies mistakenly believe that they are covered by their general liability policy. In many cases this has been shown to not be true. In the recent Sony PlayStation breach it was found that the Sony's liability insurance coverage did not include legal defense costs associated with the breach.

data breach insurance isn't just for traditional technology companies either. Any business that has access to or retains customers private details could be liable for claims resulting from a data breach. There have been numerous cases of stolen laptops containing sensitive customer information which have lead to legal action and fines.

A good data breach insurance policy will cover the associated costs of a cyber attack. This includes the costs involved with notifying the individuals impacted by the breach.

It will include good faith advertising to make sure that the public and specifically those affected are aware of the problem. It should also include the costs involved with legal defines resulting from legal action as part of the breach.

Why Small And Medium Size Business Are Vulnerable To Cyber Attacks

It's not just large businesses that are vulnerable to cyber attacks. Small businesses are in fact much more likely to be targeted that their owners often assume. Small and medium sized business owners often feel that because of their small size that they are unlikely to be targeted.

But it is precisely the small size of the business which makes them an extremely tempting target for hackers. Smaller organizations usually have weaker defenses against a cyber attack because they don't have the same IT support or technology resources.

In much the same way that burglars are more likely to target a building that doesn't have an alarm over one that does. Hackers look for weak targets and unfortunately that often means small and medium sized businesses.

While in the short term it can seem easy to ignore the possibility of a data breach, in the long term such an approach can be ruinous. It's estimated that the average cost of a data breach is $420,000. The medium scale data breach would force many companies out of business, if they are not properly insured with a cyber liability policy.

Providing Fast And Comprehensive Support For Affected Customers

Data breaches can have a long term impact on customers. data breach insurance insurance can help to offset these costs for the business and its customers. Included among this are identity and credit protection for the affected customers.

Being able to provide full support for customers following a data breach is the best way to counter the damage that can be done to a brand following a cyber attack. While it is not possible to turn back the clock to before the cyber attack, being able to help customers recover from the attack, is the best way to limit the damage to the brand.

One of the worst aspects of a cyber attack is the sustained impact it can have on customer's decisions whether to continue to do business with that company. Businesses that are able to respond quickly and responsibility to a data breach are much more likely to retain customer confidence. Providing this support is much easier to do when you are fully covered by a data breach insurance policy.

Here are some examples of data breach claims and how data breach insurance can help pay for the lawsuit:

Unauthorized access to customer data: A company's database containing customer information, such as names, addresses, and credit card numbers, is hacked by a cybercriminal who gains unauthorized access. This leads to a data breach, and affected customers file a lawsuit against the company for failing to protect their data.
Data breach insurance coverage: Data breach insurance can help cover the costs associated with the lawsuit, including legal fees, court costs, and any damages awarded to affected customers.

Employee mishandling of sensitive data: An employee accidentally emails a spreadsheet containing sensitive customer information to the wrong recipient. The recipient, who is not authorized to access the data, misuses it, resulting in a data breach. The affected customers file a lawsuit against the company for the mishandling of their data.
Data breach insurance coverage: Data breach insurance can help cover the costs of defending against the lawsuit, as well as any damages awarded to affected customers.

Ransomware attack: A company's computer systems are infected with ransomware, which encrypts their data and demands a ransom for its release. The company is unable to access their data, leading to a data breach. The company decides not to pay the ransom and notifies affected customers, who file a lawsuit against the company for the data breach.
Data breach insurance coverage: Data breach insurance can help cover the costs of defending against the lawsuit, as well as any damages awarded to affected customers. It can also help cover the costs of recovering data and restoring systems after a ransomware attack.

Insider threat: An employee with authorized access to sensitive customer data intentionally steals and misuses the data for personal gain, resulting in a data breach. The affected customers file a lawsuit against the company for the insider breach.
Data breach insurance coverage: Data breach insurance can help cover the costs of legal defense, damages awarded to affected customers, and any costs associated with investigating and mitigating the insider breach.

Third-party vendor breach: A company's third-party vendor, who has access to their customer data, experiences a data breach due to inadequate security measures. The vendor's breach leads to a data breach in the company's systems, and affected customers file a lawsuit against the company for failing to properly vet and monitor their vendors.
Data breach insurance coverage: Data breach insurance can help cover the costs of legal defense, damages awarded to affected customers, and any costs associated with investigating and mitigating the third-party vendor breach.

It's important to note that coverage and claim processes may vary depending on the specific terms and conditions of a data breach insurance policy. It's crucial to carefully review and understand the policy details to ensure adequate coverage for potential data breach claims. Consulting with an insurance professional or legal expert can also be helpful in navigating data breach insurance claims.