15 Jun What is Data Breach Insurance and How Can It Help My Business?
Data is extremely valuable. Modern companies need to carefully protect their data from cyber criminals to maintain their business reputation. Here is information on Data Breach Insurance and how it can help your business.
Do You Know Who is Viewing Your Data This Second?
Businesses collect a wide range of data, including names, addresses and credit card information. Companies are liable for the safe storage, usage, transmission and protection of said data.
Unfortunately, modern technology has made it very easy for criminals to steal electronic data. Some police departments have scanners that can track your cell phone calls. Modern cyber criminals can acquire passwords to merchant accounts during credit card processing.
Did Target Data Breach Lead to Canada Failure?
The list of top corporations and governments that have been hacked is becoming quite extensive: JPMorgan Chase, Google, Facebook, Twitter, Yahoo, eBay and Target. While other companies were concentrating on improving November to December 2013 holiday sales, Target was dealing with a data breach effecting 110 million customers. There were more than 70 class action lawsuits leveled against Target alleging “inadequate safeguards” and “untimely notice” leading to “emotional distress.”
On January 15, 2015, Target closed all 133 of its Canada stores laying off 17,600 employees. The 2013 data breach may have fatally damaged Target’s reputation.
Annual Cost of Cyber Crime
The Target case has forced credit card processing firms to think more seriously about data breaches. In 2013, the Poneman Institute calculated that the average cost of cyber-crime each year was $11.6 million per organization. Denial of service, malicious code, malware and virus attacks can lead to business disruption, stolen information, revenue loss and lawsuits. Merchant accounts are a prime target.
The Trojan Horse rootkit can set up “hidden malware” within your computer that continually steals data without you knowing it. Complicated cyber attacks, like this, can take an average of 65 days to contain (Poneman Institute).
Why Purchase Data Breach Insurance?
The financial damage from data breaches can be quite extensive. Most regular insurance policies don’t cover cyber crime. Data breach (cyber) insurance protects against the liability of downtime, lost customer information and credit card processing penalties. As data breaches become more common, it makes sense to purchase data breach insurance to protect your business’ financial assets, reputation and future.