The Hartford Steam Boiler Inspection and Insurance Company (HSB) has expanded its data breach coverage for business owners, which helps them respond to the loss or theft of the personal information they keep on customers and employees, to include legal defense and liability costs,.
“Consumers who are upset about a data breach may file a lawsuit when their private information is exposed,” said Mark MacGougan, HSB vice president for strategic products. “Our legal defense coverage can give additional peace of mind to business owners who count on Hartford Steam Boiler to help them respond when sensitive data is compromised.”
The new legal coverage is optional with HSB’s Data Compromise program, which is designed to help small and mid-sized businesses investigate a data breach, notify individuals, and provide credit monitoring, case management and other services that help prevent identity theft and fraud. HSB reinsures and manages the program for other insurance companies, so they can include the coverage in their business owners and commercial package policies.
With so much personal information stored in paper files, computer networks, laptops and flash drives, the risk of a data breach is increasing. Forty-six states now require a company to notify individuals when their information is revealed and it can cost thousands of dollars to respond. The damage to a company’s sales and reputation depends on the actions it takes.
A recent study found that 50 percent of breaches involved organizations with 1,000 employees or less; 27 percent with fewer than 100 employees and 9 percent with 1 to 10 employees. The results show that small and mid-sized companies are vulnerable to data breaches by computer hackers, thieves and dishonest employees, yet many businesses lack the resources to respond effectively.
Source: Hartford Steam Boiler
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