Average cost of a  data breach is $197 per record according to the Ponemon Institute.

How many records in your database?

The explosion of electronic data processing and transmittal as a daily part of business has dramatically increased the incidence of identity theft. More than 88 million Americans have had their personal information compromised since February 2005.

Over 30 states have passed laws requiring that businesses notify consumers if their personal information in such businesses’ control has or may have been compromised. Failure to do so can result in severe civil and regulatory penalties, administrative expenses, legal liability and defense costs—and perhaps most costly of all—damage to reputation and loss of customer confidence.

Small and mid-sized companies now have an insurance solution specifically designed to address most of these exposures.

Crisis Management Response
Focus: Businesses nationwide are required by law to respond to any unauthorized release of their clients’ information. Businesses now recognize that damage to their reputations and the loss of customer loyalty after an unauthorized release becomes public could prove costly. The value of an effective and rapid communications program in the face of such a crisis — combined with practical assistance for the victims — cannot be underestimated.

Stolen Identity Liability
Focus: Businesses are understandably concerned with the civil liability they may face as a result of identity theft based on the unauthorized release of client information. Several lawsuits already have been filed and it is possible that future settlements of these or other lawsuits will make headlines and adversely affect corporate balance sheets.

Administrative Expenses
Focus: In an increasingly regulated business environment, any corporate entity that has experienced an unauthorized release of client information may face administrative actions brought by various regulatory bodies, including: the Federal Trade Commission, federal banking agencies and state attorneys’ general.

Protection
Focus: By providing services for identity theft victims, a business demonstrates its commitment to the needs of consumers. This demonstration of good faith has proved to be a valuable asset in retaining customers, maintaining employee satisfaction and preventing costly actions.

DISCLAIMER: The description herein is a summary only. It does not include all terms, conditions and exclusions of the policies described. Please refer to the actual policies for complete details of coverage and exclusions. Coverage may not be available in all jurisdictions. Issuance of coverage is subject to underwriting.