Today, let’s take a look at data breach recovery costs and some typical types of coverage.
The first thing to consider is that the majority of states have data breach notice laws. These require that notification be made to individuals, if their nonpublic personally identifiable information has been exposed.
These laws also apply in cases of personal health information being compromised.
Data breach recovery costs can be expensive. Depending upon the number of impacted individuals and compromised records, this could be the most expensive portion of your recovery!
Typical Data Breach Recovery Costs coverage provides:
- Expenses to notify affected individuals of the breach
- Legal and forensic costs to determine the extent of the breach and how best to respond
- Services to impacted individuals, such as credit monitoring, a help line and identity restoration case management
- Access to a data security resource website
Typical Data Breach Liability provides coverage for:
Damages the insured is legally obligated to pay due to:
- Fraudulent use of nonpublic personal information
- Lost or stolen nonpublic personal information
- Accidentally released nonpublic personal information
- Costs to defend suits seeking such damages, including investigation or settlement of a covered data breach suit
Typical Commercial Identity Recovery coverage provides:
This portion of a policy covers a business owner(s) in the event of the theft of their personal information. There is also an option to include any or all employees that the owner may wish to include.
These services typically include:
- Reimbursement of necessary and reasonable expenses incurred as a result of:
- A case manager who will assist the individual in recovering control over their personal identity. This could include contacting law enforcement agencies, credit bureaus and businesses in the process of correcting records.
- Identity theft
- Lost wages
- Mental health counseling
- Child and elder care supervision costs
One-Stop policyholder support is provided, including:
- Seamless integration of response services
- Documentation of every stage of the breach response process
Please Note – I have used the term “Typical” in these sections because Data Breach coverage is new and quite customized.
When you contact an organization like MrInsurability, you should expect to receive a plan that is customized to your particular business.
Next time we’ll look at a few ideas on data breach recovery costs and where to get started assessing your needs.