Russell Bond & Co., Inc. August 2016  
 
A Look at Data Breach from Another Angle 
 
Let's look at a data breach from a different angle.  Most policies have multiple modules.  Network Security provides coverage for a failure to protect the insured's data. Privacy Liability covers a failure to protect information such as Personally Identifiable Information (PII) and Personal Health Information (PHI).  When handling PII and PHI, there are many exposures to consider.  If the answer to any of the follow questions is YES, your insured has an exposure.

Does the insured handle confidential information?

  • Employee information
  • Confidential client information including personal and corporate

Where is the information stored?

  • Computers / lap tops / mobile devices
  • Paper files

Does the insured have a website?

  • What content is stored on the website?
  • Can employees or a third party update content from the website, such as blogs, pictures or comments?

How can a data breach occur?

  • Internally, including employees and vendors:
         a. Malicious - stealing information (ie. card skimming) - over 35% of breaches occur from this
         b. Negligence - lost devices, incompetence, mistakes
         c. Vendor Contracts - what is the indemnification in the contract
  • Externally - hackers, organized crime
         a. Stealing information
         b. Sending viruses / malicious code
         c. Disruption of business - vandalism
A Privacy & Security policy can include:

Network Security: provides coverage for failure of the insured to protect their computer systems from viruses, malicious code, malware attacks.  This includes forensic costs, public relations and lost income

Privacy Event: provides coverage for a failure to protect confidential information (PII, PHI).  Most states (47) have privacy laws in place, not to mention the numerous federal laws and regulatory actions.

First Party Coverage: covers costs for Breach & Legal Consultation, Forensic Investigation, Public Relations Services, Notification, ID and Credit Monitoring, Lost Electronic Data
 
What does a breach look like?
Claim submission to the carrier → Select experts → Investigation → Notification preparation (what laws need to be complied with and how) → Notification → Resolution
 
An auto dealer recently was the victim of a data breach, which impacted 535 records.  The total cost to the auto dealer?  $100,000!  Have your clients budgeted for this? Reduce their exposure and risk with a Privacy & Security policy.

No two policies are the same.  We specialize in Privacy & Security coverage, know the in's and out's
of each form and have access to the leading markets.

  
Tonya Hollederer Jackie Oddo
Tonya Hollederer, ext. 133
Vice President / Senior Broker
thollederer@RussellBond.com

 
Jackie Oddo, ext. 161
joddo@RussellBond.com
Call Tonya or Jackie for more information:  800-333-7226
 
"A Wholesale Insurance Broker unlike any other..."
____________________________________________________________________________
66 Years
1950 - 2016 
866 Ellicott Square Bldg.  |  295 Main Street  |  Buffalo  |  NY  |  14203
1670 Whitehorse - Hamilton Square Road  |  Hamilton  |  NJ  |  08690
Hampton Ponds Plaza # 12 |  1029 North Road  |  Westfield  |  MA  |  01085
800.333.7226  |  www.RussellBond.com  |  Fax: 800.677.6779
Trusted since 1950