What is Data Breach Coverage?
More and more companies are going paperless these days and while this is a great step towards greater efficiency and at the same time environmental protection, they also subject themselves to a much higher risk of data breaches. This possibility is very high for businesses that usually deal with Social Security Numbers, patient medical records, but also credit cards and many other types of sensitive data.
Data Breach Facts
1. Data breach is becoming one of the most popular and faster growing crimes in the US.
2. The cost of mitigating damages for compromised records ranges from one hundred and twenty to three hundred dollars per record.
3. Companies rarely take into consideration the costs of recovering from such breaches prior to their systems being breached.
4. Employees and clients may need ongoing credit monitoring after a breach has occurred.
5. A notification mailing is mandatory.
6. Data breaches may require effective crisis management, possible monetary settlements, legal defense, liability assessment and may also severely disrupt business operations. In some cases, it may even put people out of business.
Given the fact that data breaches have become very common, when a breach occurs companies need to satisfy specific regulatory requirements. Unfortunately, this comes at a high cost for the business owner. In a response to this, The Clausen Agency has come up with a data breach insurance policy plan that can help cover the costs associated with such breaches.
Those who consider it will enjoy great coverage and have the peace of mind that their policy can help them avoid possible lawsuits that people may file against them, but also pay for certain response expenses required in order to comply with notification regulations. These services can effectively help you reduce the damage to your company’s reputation and swiftly restore any loss of employee, patient and client trust.