In the event of a data breach your company is at risk of losing one of its most valuable assets — data. You cannot put a solid number on the value of data with its intangible qualities that often are not specifically covered under most business insurance policies. Loss of data can negatively impact the bottom line in so many ways. First, there is the cost of reconstructing lost electronic records, or recovering information. Then you must consider the cost of business interruption in the event that your server or systems are corrupted. What about notification costs? If you collect or store personal information you are subject to state and federal laws requiring that you notify our customers in the event of a breach. In addition to these costs how will you handle crisis management? Is your business staffed to handle a flood of incoming calls from outraged customers who've just been notified that their private information may be in the hands of an identity thief? What will you do to rebuild your reputation? How much will the extra advertising fees and lost revenue impact you?
There are insurance products available to protect you in the event that you are the victim of a data breach. Cyber security liability policies are unique in the way that they respond to a variety of events including but not limited to, human error, cyber extortion threat, unauthorized access, theft of digital assets and malicious code. The products available in today's market are not consistent. It is important to have an agent that understands the nuances of the coverage forms to be sure all of your liability and property exposures are covered. As an independent agency, DMD Insurance Services is able to compare not only premiums from multiple carriers but also coverage features to be sure that your policy is tailored to fit your individual needs.
