Do You Need Data Breach Insurance?
Do you have a database of personal and private information?
Private Information Includes
- Name
- Address
- Date of birth
- Social Security numbers
- Credit Card numbers
- Driver’s License Numbers
- Mother’s Maiden Name
- etc.
If yes, then you have exposures that need to be addressed and can be insured. Even with the best cyber-security team, software, processes and procedures data breaches can happen. Are you using web based software? A cloud vendor? Then you may be liable if your vendor has a data breach, because your customers’ records are at risk.
What is Your Exposure if There is a Breach?
According to the Ponemon Institute, the average cost of a data breach is $204 per record. If you only have 2500 records, that’s over half a million dollars in risk.
Your expenses could include:
- Legal and Defense Expenses
- Crisis Management Response Expenses
- Regulator Fees and Expenses
- Notification Expenses
- Identity Theft Recovery Expenses
- Information Asset Recovery Expenses
- Business Interruption
- Cyber Extoration
