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.