What is data breach insurance?

Data breach insurance goes by many names, including privacy liability and cyber liability.  It can provide coverage for several types of risk:

• notification expenses to notify those who have had their data stolen (generally these are the customers)
• good faith advertising expenses
• cyber extortion
• network security liability
• and more

Who needs data breach or privacy liability insurance?

Almost every business needs this type of insurance.  Any business that gathers any information, even if it is simple as a name and zip code.  Of course, if a business accept credit cards of e-checks, they are at risk.  The cost of a breach could bankrupt a company.

Offer your clients data breach insurance to protect yourself as well, but reducing E&O exposure.