Privacy Liability and Data Security

The loss of personal customer or employee information has become an increasingly pervasive and costly problem for companies.  Recent studies have shown that 80-90% of all U.S. businesses have experienced a breach of personal customer information.  However, unless a company has privacy liability insurance, it is not covered for the losses caused by a breach. 

The costs of a breach can be catastrophic– in 2009, the average cost incurred by a business victimized by an information security breach reached $6.75M.  Studies from that same year showed that when personal files are compromised – whether due to a computer hacker, a lost/stolen laptop, or a dishonest employee – the average cost to a business is more than $200 per compromised customer file. 

Yet most businesses have inadequate data security programs in place to meet this threat, or to comply with increasingly burdensome state identity protection laws and regulations.  Moreover, very few businesses have insurance specifically tailored to meet this threat and to reduce the likelihood of loss that cripples the company’s ability to operate.

To meet this need, DataRisk has created a complete platform specifically designed to help companies reduce the risk of a breach and to ensure that they have the best possible protection should a breach ever occur. 

The DataRisk platform includes two tiers of protection for its clients:

• Privacy Liability Insurance Solution:
  DataRisk works with its clients to provide a cost-effective privacy liability insurance solution that is specifically tailored to the client’s particular data security risk.  Our solution will address:
  
  
  • Forensic investigation costs following a breach; statutory notification costs; customer credit monitoring; public relations expenses; and regulatory fines, fees, and penalties
    
    
  • Lawsuits associated with an information security breach
    
    
  • Governmental investigations, fines, and penalties
    
    
• Data Security Solution:
  DataRisk has partnered with data security specialists to provide the highest level of technical expertise in developing solutions for its clients’ data security needs.  Working with these technical specialists, our services include:

• Vulnerability testing of the client’s data security system along with recommendations for solutions to system vulnerabilities
  
  
• Assessment of compliance with state data security laws and regulations
  
  
• Assistance with the development of a comprehensive data security program

For more information or to discuss privacy liability insurance and data security solutions that may be appropriate for your business, please contact Larry Gingrow at DataRisk LLC at (603) 778-8985.