Businesses These Days are More Likely to Suffer a Loss from a Cyber Attack than a Fire
With an average price tag varying from $100-$250 per record breached, claims falling under this type of coverage can add up fast. Privacy and Cyber policies are designed to cover businesses for the unintended release of information that they collect, whether it be personally identifiable information (names, addresses, credit card numbers, medical records etc. of their Clients, Employees, Patients, Students, Etc.) or confidential corporate information.
Thieves today are aware that one of the biggest assets an organization has is its electronic data. Current legislation suggests that the businesses collecting and/or retaining the property of others (in this case, their identities or aspects there-of) have a specific legal obligation to secure and protect that data. When this obligation is breached through the breach of a computer system or some other means, the business that initially collected the data will be considered legally liable.
Policies designed to cover this exposure are generally a unique combination of First Party coverages (i.e. coverages for the business that collected and inadvertently released the information) and Third Party coverages (i.e. coverages for those whose information was breached). They can cover a wide variety of expenses, typically in an a la carte fashion, including notification costs, credit monitoring, fines and penalties, and loss resulting from ensuing identity theft, etc.