• Network/Security Liability - coverage for claims arising from unauthorized access to data, failure to provide notification of a data breach where required by law
• Media Liability - coverage for claims arising from copyright infringement, plagiarism, libel/slander in electronic content
• Computer Fraud - coverage for loss of money, securities or other property due to computer virus or unauthorized access
• Crisis Management Expenses - coverage for public relations services to mitigate negative publicity
• Regulatory Defense Expenses - coverage for governmental claims made as a result of network, security, communications, and media liability
• Systems Business Interruption - coverage for loss of income or expenses as a result of a computer system disruption caused by a virus or unauthorized computer attack, etc.
• Limits can be combined, separate or provide specific sublimits
Why Buy Data Breach Insurance?
• Data breaches occur every day.
• While hacking incidents are the most recognizable and expensive cause of data loss, they are not the most common:
• 40% are caused by people making mistakes, such as losing a laptop or flash drive
• 36% are system glitches
• 24% are malicious criminal attacks
• The average cost of incident per customer is over $200. Costs may include:
• Customer notification & support
• Forensic research & data recovery
• Credit monitoring
• Legal fees
• Public relations
• Technology changes & staff education
• Reward & extortion expenses
• Replacing stolen funds or securities
Most businesses have the legal duty to notify their clients or patients in the event of a data breach. High risk businesses include:
• Educational Organizations
• Retail & Wholesale
• Insurance Agency
• Law Firm
• Community Bank
*This is just a coverage overview. Actual policy wording applies.
Karlee Rahm Marketing
Griffin Underwriting Services
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