Data Breach Insurance: Just the Facts – As the facts emerge, one thing is becoming clear – a data breach is a serious issue every small business needs to understand and plan for.
Data Breach Defined – Loss, theft, accidental release or accidental publication of Personally Identifiable Information (PII) and Protected Health Information (PHI) including: Social security number, bank account number, credit or debit card numbers, driver’s license number, patient history and medications.
How a Breach Can Occur – Stolen or lost paper and electronic files; stolen or lost laptop, smartphone, tablet or computer disks; stolen credit card information; employee error or oversight; theft or release due to unauthorized access (such as by former employees or vendors); hacking.
Who Needs Data Breach Coverage – Any business, small or large, that handles or stores any private customer, patient or employee data is at risk. Businesses such as healthcare practices, law offices, accounting offices, retailers, restaurants or financial services are at a higher risk for a data breach because of the quantity and type of sensitive information they handle and store.
How Data Breach Insurance Can Help – Offers time-saving professional services to help quickly restore your business’ reputation, guide you in handling a breach and assistance with regulatory compliance Covers response expenses, including mailing notification letters, credit monitoring services and public relations Provides coverage for defense and liability expenses in the event you’re sued because of a breach.
Cyber Liability – Understanding Cyber Liability for Technology Companies
Recently, a large healthcare provider reported that, due to a data breach, it would be providing credit
monitoring and identity theft services to over 600,000 individuals for two years. In addition, the same provider settled class action lawsuits in several states with payments to each individual. The total costs to the provider were in the tens of millions – all as a result of a network security failure. This scenario
illustrates the economics of cyber risk and liability, an area of growing concern for life science companies.
What is cyber risk and how do medical technology and pharmaceutical companies manage this potential for financial loss? Cyber Exposure Simply stated, cyber exposures are directly connected to the responsibility companies have to protect their electronic information. Cyber risk refers to the potential consequences associated with this information being compromised or misused.