- What is data breach insurance?
- Who needs data breach insurance?
- What does data breach insurance cover?
- What doesn’t data breach insurance cover?
- How much does data breach insurance cost?
- How much data breach insurance do I need?
- How do I get data breach insurance?
What is data breach insurance?
Data breach insurance, sometimes called cyber liability insurance, covers businesses that handle sensitive data against the risk of being hacked. Most financial services businesses have computer systems that store private customer information. This might include personal identification, financial, or payment information, or social security numbers. Insurance ensures that you are covered in the event of a data breach, denial of service attacks, virus, or even if a laptop containing sensitive information is lost. These damages are commonly excluded under commercial general liability policies. This makes data breach insurance a good choice if your business stores sensitive customer data.
Financial professionals frequently store tax or bank account information. Your servers could be attacked by a virus that steals the bank information of several customers. These customers could file suit against your company for violation of privacy. Data breach insurance covers legal fees and fines associated with cyber attacks. This insurance will also cover fees for public relations costs to repair your company’s reputation, as well as the cost of technical assistance to investigate a hack.
Cyber attacks may also stop your business operations for a period of time, causing you to lose money. If you store sensitive customer information, having data breach insurance is a wise investment that will provide financial protection in the event of a cyber attack.
Who needs data breach insurance?
Financial services professionals who store personally identifying customer information may need data breach insurance if they collect any of the following information:
- Credit card numbers, or other bank or payment information
- Personal information such as names, email addresses, phone numbers, addresses, social security numbers, or driver’s license numbers
- Health and medical information
- Trade secrets or patent applications belonging to your clients
What does data breach insurance cover?
What doesn’t data breach insurance cover?
How much does data breach insurance cost?
How much data breach insurance do I need?
How do I get data breach insurance?
There are many factors to consider when purchasing data breach insurance—from the financial strength of an insurer to the pricing that you’re offered. AdvisorSmith has reviewed many of the insurance companies offering data breach insurance, and below are some of the top companies.