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Data Breach Insurance Coverage
Insurance to Cover Data Privacy & Data Loss Due to a Security Breach
The more sensitive data you handle, the higher your chances of experiencing a data breach or a security incident. Don't leave your priceless data exposed! Data Breach Insurance Coverage from Melendez Insurance is designed to cover privacy, data and network exposures while providing peace of mind. Our expertise in data breach insurance can help provide flexible coverage for the costs to respond to a breach, the costs to defend and resolve claims for statutory violations, negligence, regulatory investigations and a breach of contract.
Data Privacy Breaches are More Common Than You May Realize
The risks of data loss are not limited to sophisticated hackings. A breach can result from something as simple as a stolen iPhone or thumb drive. Or have you ever accidentally left your laptop in the back seat of a taxi cab? Once you start to consider everywhere you travel each day, you realize that the opportunities for data loss or privacy breach of your important data are endless. And then, of course, the likelihood of being hacked by either an international criminal or a rogue computer program is growing constantly.
When such a breach occurs, there are significant ramifications from both the legal and financial perspective. Unlike many risks, a single data breach can result in both first-party and third-party losses. For example, a system hacking may shut down a CPA firm, resulting in the interruption of business and lost profits (a first-party loss) and if the hacking results in the dissemination of clients' financial information, the firm may face lawsuits from those clients (a third-party loss).
Data Breach Insurance: Coverage for Privacy & Data Loss
As the risks of data breaches have become more prevalent, the insurance industry has responded by offering new products to protect against the associated risks. A data breach insurance policy can potentially cover a variety of losses, including the following:
- Costs of recovering or restoring lost data
- Business interruption due to a data breach or system hacking
- Responding to a data breach (e.g., costs of notifying customers, payment of credit monitoring, etc.)
- Lawsuits brought by those whose data was disclosed
- Defending regulatory action, including regulatory fines
The addition of data breach coverage to your current business insurance policy can protect your company from this ever-growing threat.
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