Insurance for Expenses from a Breach of the Security of Your Data

databreachA breach of the privacy and security of your business’s information can be disastrous for your business.  Legal requirements kick in, requiring notification of affected customers or patients and other actions.  You may need to hire experts to investigate how an electronic breach occurred and how to respond.  And you risk losing the trust of your customers or patients.

For many of our customers – medical practices and law offices – the risk of data breach is significant.  Physician offices, by their very nature, collect large amounts of personal data about their patients.  Many physicians are concerned about the data breach risks involved with the transition to Electronic Medical Records.  Attorneys also store sensitive information about their clients, including financial and health information, making them similarly vulnerable to data breaches.  Common causes of data breach are described below.

Fortunately, there is insurance coverage available to help with the effects of a data breach.  Coverage can be added to a Hartford Spectrum Business Owner’s Policy that includes coverage for notification and public relations expenses and services for affected individuals, such as credit monitoring.  Along with this coverage comes access to professional assistance in the event of a data breach.  Coverage of $10,000; $25,000; $50,000; and $100,000 is available.

For more coverage, we can help you obtain a stand-alone data breach policy.  This type of policy offers higher limits and additional types of coverage, such as third-party liability coverage to protect your business from a suit brought by someone affected by a data breach.  We urge you to call to speak with one of our representatives, who can help you obtain a proposal for this coverage.

How Do Data Breaches Occur?

  • An employee might take a laptop with patient information home, only to have the laptop stolen from his/her car
  • A jump drive or other removable storage device is easily lost
  • Data breaches have occurred when rogue employees have purposely leaked sensitive information to harm their employers
  • Paper documents meant to be shredded can inadvertently be thrown away with the regular trash
  • A computer network can be hacked into.

(Information provided is a summary only.  For complete terms and limitations, please refer to the applicable Certificate or Policy of Insurance.  Specimen copies available upon request.)


Watch The Hartford's Brief Introduction to Data Breach Coverage

Data Breach Insurance