Cyber Liability

Data breaches are increasing at an alarming rate, and purchasing a cyber liability policy is the best way to make sure your business is covered against this growing threat. The scope of a data security incident can range from a stolen laptop to a massive breach by overseas hackers, and anything in between.

Most states have passed laws requiring notification of consumers whose personal information has been compromised in the event of a security breach. The costs associated with such notification – sending certified mail, changing account numbers, and subscribing to credit monitoring services – can be staggering at $30 or more per consumer.

Any business that stores personal information on consumers is a potential target, including the collections industry. It is important to note that errors & omissions policies typically do not cover claims related to data breaches. Some policies offer a network security coverage endorsement for an additional fee, but such endorsements do not cover the costs of notifying consumers about the breach.