Privacy Liability

If your business stores personal information, you have a responsibility to guard it. More often, we're hearing in the news about stolen, misplaced, or poorly guarded personal information. The employee that had backup tapes stolen out of a car, the misplaced laptop, and even the dreaded "targeted attack." Patient records, student records, credit card information, even employee information is all at risk. '

To make it more challenging, many states now have mandatory disclosure statutes. So after the company becomes aware of circumstances that could have lead to a disclosure (even if it isn't likely) they are required to notify every affected person and may be required to offer free credit monitoring. To make it more cumbersome, these laws are changing rapidly and are not uniform from state to state.

And to top it off, the breaches can be staggering. University of Florida had an incident potentially disclosing information on 107,000 people. The cost of a mailing alone to that group is large.

Privacy liability insurance not only offers some protection against the suits and pays for mandatory disclosures, but the claims team has experience with these incidents. The brain power of a privacy liability claims team is as valuable and faster than hiring a special consultant. The claim team costs are also not counted against the policy limit.

As we move to make more information accessible, safeguarding it becomes even more important. Privacy / network security insurance can offer protection for a quickly and stealthily increasing exposure.