Coverage Highlights Companies of all sizes now have an insurance solution specifically designed to address most of these
•Legal liability damages
•Regulatory Action Expense
•Crisis Management Expense
•Identity theft recovery services for victims
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.