We, at Jackson Dieken & Associates, refer to this important insurance coverage as “Privacy Liability”. This helps keep in mind that the coverage needs to protect against both electronic security breaches and theft of sensitive information that is in hard copy paper form as well.
Security breaches are universal and do not affect just high profile companies or the government.
Recently, FBI Director James Comey, said in an interview there are two types of companies “Those who’ve been hacked…and those that don’t know they’ve been hacked.”
Many think that privacy losses will be covered by traditional General Liability or Property policies, however that is not the case. Included in the coverage are the costs to monitor credit reports of any affected party (which is required for 12 months), forensic costs to determine how the breach occurred, as well as business interruption to make up for lost income during downtime.
Please contact Jackson Dieken & Associates to discuss this important and increasingly critical coverage.
Visit our business resources for several tips on how to better protect your businesses & customers’ data.