WHY DO SMALL BUSINESS OWNERS NEED TO PROTECT THEIR BUSINESS AND REPUTATION?

WHAT IS DATA COMPROMISE?

Personal data compromise is the loss, theft, accidental release or accidental publication of personal information. Personally identifying information is generally information that is not available in the public domain, such as name and address in conjunction with an account number.

Data can be breached intentionally through physical theft or electronic hacking; or it can be inadvertently released, such as lost files and exposure on a non-secure website; or it can be fraudulently obtained by data thieves.

DATA COMPROMISE PROVIDES FIRST-PARTY COVERAGES FOR SMALL BUSINESSES TO RESPOND TO STATE NOTIFICATION REQUIREMENTS

Provides costs for:

  • Professional legal counsel to review the facts and advise on the appropriate course of action.
  • Information technologies to review the nature and extent of the data breach.
  • Notification to affected individuals – typically involving the creation of a package of materials that is mailed to the individuals affected by the breach.
  • Public relations services includes costs to implement public relations recommendations, including advertising and special promotions.

THIRD-PARTY COVERAGE (OPTIONAL)

Third-party coverage is available to protect the insured from lawsuits filed by affected individuals upset about the data breach when their private information is exposed.

DATA COMPROMISE PROVIDES ADDITIONAL BUSINESS REPUTATION PROTECTION

In addition to the various state notification requirements, it is expected that an entity suffering from a data breach will provide services to those affected by the breach. Failure to provide such services may further damage a business’s reputation. In the event of a data breach, Data Compromise coverage provides expense reimbursement for the following at no cost to those individuals affected by the breach:

  • Packet of Informational Materials containing loss prevention and customer support information.
  • Toll-Free Help-Line for those affected by the breach to call with questions pertaining to the breach.
    • One year of Credit Monitoring for up to 12 months from the date of notification.
  • Identity Recovery Case Management Services for those affected by the breach who have had their identity stolen as a result of the breach. Services are to be initiated within 12 months of the notification and may continue for 12 months from the date of initiation.

The services listed above can be tailored by the insured depending on the size of the breach and the type of data breached.

OPTIONAL COVERAGE IS AVAILABLE FOR DEFENSE AND LIABILITY
Defense and Liability is provided should insured receive notice of a data compromise suit brought by one or more “affected individuals” or by a governmental entity on behalf of one or more “affected individuals”.

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