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R&R Insurance Blog

Don't Forget the Importance of Data Breach Coverage

Posted by Kimberly Strand

More than ever in this day in age, we hear about major retailers having a breach of customers' personal information. By the time you realize one happened to your business, its often too late. Therefore, it is best to be aware and protected just in case. Do you know if your business covered for a Data Compromise?

iStock_48001872_LARGE_data_breach.jpgWhat is a Data Compromise?
  • A breach of a company’s network, in which customer information is stored, processed,  transmitted, etc. 

What do I need to do to make sure my business is covered?

  • Be sure to talk to your insurance agent about Data Breach Coverage today! When purchasing Data Breach Coverage you will want to make sure Response Expense AND Defense & Liability Coverage is included.

Response Expense can help provide service to help your business comply with state laws requiring notification, credit monitoring, and identity restoration.  Some items you want to confirm are included in your insurance provider’s response expense are as follows:         

  • Provides coverage for notification to customers who may have been affected by a data breach
  • Provides 12 months of credit monitoring after data breach
  • Forensic IT Review coverage to cover costs associated with hiring a third party computer expert to help determine the extent and origin of the data breach
  • Legal review to pay for costs of professional advise
  • Public relations coverage to pay services needed to retain goodwill with your customers

Defense and Liability Coverage will cover defense and settlement costs in the event a customer/s bring suit against your company.

 

If you have any questions about your current coverage or want to learn more about setting up a policy, contact a Knowledge Broker.

Topics: data breach, Cyber Liability

7 Key Coverage Elements of Cyber Liability Insurance

Posted by the knowledge brokers

IdentiftyTheft2While cyber insurance policies have been available in the market for years, I find that confusion still reigns as to what these policies cover. This confusion is warranted. The number of different policies available for cyber liability coverage along with an increasing number of endorsements that can be added to policies makes data breach coverage harder and harder to understand.

Here are the 7 Key elements to cyber liability coverage that you should look for in a cyber liability policy:

  1. Forensic Expenses:
    You have determined that data has been compromised and need to investigate what happened, how it happened, and what information was accessed. The expenses to hire an outside forensic team for discovery is covered.
  2. Legal Expenses:
    You will need legal representation in order to determine the scope of the federal and state notification requirement breaches. You will also need legal counsel to defend you in the event a suit is filed against you.
  3. Notification Expenses:
    These expenses can include postage, paper, printing, call centers, etc.
  4. Regulatory Fines and Penalties:
    What more can I say? The government will want, and get, their pound of flesh.
  5. Credit Monitoring and ID Theft Repair:
    While not legally required, it is generally agreed that offering these services to the affected parties will reduce potential legal liability and is considered the right thing to do.
  6. Public Relations Expenses:
    The manner in which the breach is reported to the media is crucial to restoring your reputation and maintaining your clients, vendors, business associates, partners, and patients.
  7. Liability and Defense Costs:
    It's not uncommon for class action lawsuits to be filed against you following a breach. You will need legal representation which can be of your own choice or appointed by the carrier. Either way, coverage is available for these costs.

Most policies will include some coverage for all of these components. The limits, deductibles, coverage triggers, and scope of coverage can vary greatly from one carrier to the next. At R&R we believe that securing the right policy for your business is a process. We can help you understand your risks and exposures and craft a policy that meets your expectations.

Related articles:
Average Cost of Corporate Data Breach is $7.2 Million
Transfer Your Cyber Liability Exposure

For more information on how to protect your company against the cost of a data breach or anything regarding cyber liability, contact a knowledgebroker.

R&R Insurance Cyber Liability eBook

Topics: Cyber Liability, identity theft, credit monitoring after a data breach, data breach, Business Insurance

UWM Data Breach: Another Reason To Learn More About Cyber Liability

Posted by Resource Center

Yesterday's announcement of UWM's data breach of 75,000 student and employee records is just another example of the exposure that all organizations have when it comes to their computer networks and the data that they are responsible for protecting.

How is your organization protected against a data breach like this? Learn what coverages you should have in place to protect your organization from a costly data breach experience and about the process of recovery.

How a business can protect itself against cyber crime
Cyber Liability Seminar
MRA conference Center in Waukesha, WI.


Wednesday, October 5, 2011
8:00am - 11:30am

Companies receive an average of 4 million attacks against their networks on a daily basis. Sure, companies can employ the best IT talent around, but that’s no guarantee that your network won’t be compromised, or that your data won’t be breached. No system is 100% secure!

Attend our free Cyber Liability Seminar. Learn this and a whole lot more...

Recent news about data breaches and losses sustained due to lack of insurance coverage for cyber crime:

UWM: 75,000 records breached!
Texas Spends $1.8 Million on Data Breach As Lawsuits Loom
WellPoint Fined $100k for Failing to Report Data Breach
Losing the War on IT Security
Sony Laid Off Employees Before Data Breach Lawsuit
RockYou Data Breach Lawsuit Moves Forward
Data breaches may lurk in office copiers and printers
Michael's Department Store Breach 4 Suspects Sought
Average cost of a corporate data breach is $7.2 million
Class slams Michaels for Data Breach

357 People Affected by Data Breach at North Carolina's Wake Forest Baptist
Nurse Accused of Accessing 2,500 Medical Records at Memorial Hospital in Colorado
Walgreens.com site exposed patients’ pharmacy records to other patients?
Hospital employee and three others accused of stealing patients’ identities
An unintended exposure leads to a mea culpa from an online psychiatry journal
Personal Info Stolen From Patients At DeKalb Medical
Drug, paternity test records exposed
Morgan Stanley loses 34k customer records on unencrypted CDs
Groupon loses 300,000 user details
SEGA hacked, records exposed
Eight million health records lost on NHS laptop

R&R Insurance Cyber Liability eBook


Topics: Cyber Liability, UWM data breach, data breach, Business Insurance

Cyber Liability Seminar Announced

Posted by Resource Center

R&R Insurance announces the date for the new Cyber Liability seminar, which will cover how a business can protect itself against cyber crime, will be Wednesday, October 5, 2011, 8:00am - 11:30am, held at the MRA conference Center in Waukesha, WI.

Companies receive an average of 4 million attacks against their networks on a daily basis. Sure, companies can employ the best IT talent around, but that’s no guarantee that your network won’t be compromised, or that your data won’t be breached. No system is 100% secure!

How can a business protect itself against a costly data breach or a business-halting compromise to their network?

Attend our free Cyber Liability Seminar. Learn this and a whole lot more...

Recent news about data breaches and losses sustained due to lack of insurance coverage for cyber crime:

UWM: 75,000 records breached!
Texas Spends $1.8 Million on Data Breach As Lawsuits Loom
WellPoint Fined $100k for Failing to Report Data Breach
Losing the War on IT Security
Sony Laid Off Employees Before Data Breach Lawsuit
RockYou Data Breach Lawsuit Moves Forward
Data breaches may lurk in office copiers and printers
Michael's Department Store Breach 4 Suspects Sought
Average cost of a corporate data breach is $7.2 million
Class slams Michaels for Data Breach

357 People Affected by Data Breach at North Carolina's Wake Forest Baptist
Nurse Accused of Accessing 2,500 Medical Records at Memorial Hospital in Colorado
Walgreens.com site exposed patients’ pharmacy records to other patients?
Hospital employee and three others accused of stealing patients’ identities
An unintended exposure leads to a mea culpa from an online psychiatry journal
Personal Info Stolen From Patients At DeKalb Medical
Drug, paternity test records exposed
Morgan Stanley loses 34k customer records on unencrypted CDs
Groupon loses 300,000 user details
SEGA hacked, records exposed
Eight million health records lost on NHS laptop

R&R Insurance Cyber Liability eBook


Topics: Cyber Liability, Healthcare, Resource Center, Municipalities LWMMI, No system is 100% secure, data breach, Business Insurance

Average Cost of Corporate Data Breach is $7.2 Million

Posted by the knowledge brokers

Data Breach In preparation for a recent seminar I presented, I came across this great article regarding corporate data breaches and the costly ramifications by Tim Wilson of Dark Reading. Everything's more expensive these days -- and experiencing a major corporate data breach is no exception.

2010 Annual Study: U.S. Cost of a Data Breach reveals that the average organizational cost of a data breach increased to $7.2 million and cost companies an average of $214 per compromised record. The sixth annual Ponemon Cost of a Data Breach report is based on the actual data breach experiences of 51 U.S. companies from 15 different industry sectors.

Interestingly, companies who responded quickly to data breaches ended up paying 54% more per record than companies that moved more slowly, according to the study. 43% of companies notified victims within one month of discovering the breach, up seven points from 2009. In 2010, these quick responders had a per-record cost of $268, up 22% from 2009; companies that took longer paid $174 per record, down 11%.

Malicious or criminal attacks are the most expensive breaches, the study says, and are on the rise. In this year’s study, 31% of all cases involved a malicious or criminal act -- up seven points from 2009 --and the cost of these compromises averaged $318 per record, up 43% from 2009.

While external breaches are on the increase, negligence remains the most common threat, Ponemon says. The number of breaches caused by negligence edged up one point to 41% and averaged $196 per record, up 27% from 2009.

System failure dropped nine points to 27% in 2010. "This trend indicates organizations may be more conscientious in ensuring their systems can prevent and mitigate breaches through new security technologies and compliance with security policies and regulations," Ponemon says.

Encryption and other technologies are gaining ground as post-breach remedies, but training and awareness programs remain the most popular, the study says. 63% of respondents use training and awareness programs after data breaches, down four points from 2009. Encryption is the second-most implemented preventive measure as a result of a data breach, with 61%. Both encryption and data loss prevention (DLP) solutions have increased 17% since 2008.

The study takes into account a wide range of business costs, including expense outlays for detection, escalation, notification, and after-the-fact (ex-post) response. The study also analyzes the economic impact of lost or diminished customer trust and confidence as measured by customer churn or turnover rates.

"Churn is still the highest cost that we see," Ponemon said. "There's an attitude out there that users no longer care about their privacy as much, but our data shows that they really do."

The U.S. Cost of a Data Breach Study was derived from a detailed analysis of 51 data breach cases with a range of nearly 4,200 to 105,000 affected records. The study found there is a positive correlation between the number of records lost and the cost of an incident. Companies analyzed were from 15 different industries.

For more information on how to protect your company against the cost of a data breach or anything regarding cyber liability, contact a knowledgebroker.

R&R Insurance Cyber Liability eBook

Topics: Cyber Liability, external breaches, expensive breaches, data breach study, breach, cost of a data breach, post-breach remedies, data breach, corporate data breaches, Business Insurance