Are You Prepared for a Data Breach?

Posted on June 29, 2020 by admin
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Unfortunately, with nearly everyone being online these days the likelihood of your business, no matter how large or small, falling victim to cyber threats is higher than ever before. If the COVID-19 pandemic has caused you to have some or all of your company employees working from home and online, you may be in the top tier of companies at high risk of a data breach.

What is a Data Breach?

A data breach is a security failure in which electronic private information, such as social security numbers, credit card numbers, bank numbers, passwords, etc. are either accidentally or nefariously exposed.  Once the confidential or personal information is breached, the owner of the information is at risk of that information being distributed with the intent of damaging lives and reputations, and potentially a loss of assets.  Laws in both the US and many other countries now regulate what must be done whenever such a breach occurs, which can be very expensive.

Cost of a Data Breach

According to the 2019 Data Breach Report conducted by the Ponemon Institute, sponsored by IBM Security, the average total cost of a data breach has risen to $3.92 million worldwide, with breaches in the United States averaging $8.19 million.  Healthcare remains the most expensive industry to suffer breaches, averaging $6.45 million.  The average size of a data breach at the time of the report was 25,575 records. Data from:  Hipaajournal.com 2019

Protect your Business

You’ve worked hard to build your business into the company it is today.  All businesses, including yours, are at risk. Especially those who store any personal, proprietary, or sensitive trade information on employees or clients.  Is your business interconnected to its clients, its employees, or its vendors?  If the answer is yes, then you are definitely at risk.  Here is the key question:  As a business owner, can you afford to continue holding this risk yourself?  If not, it is time for you to consider purchasing a Cyber Security Insurance policy that can help to protect the assets you have built with your business.

What does Cyber Security Insurance Cover?

A Cyber Security Insurance policy generally is made up of two parts: First-party and Third-party coverage

First-party coverage generally includes:

  • Privacy Breach Notification Costs – Costs incurred to notify your clients, employees, stockholders, etc. of the incident and help to pay for credit monitoring for each.
  • Computer and Legal Expert Costs – If you have a breach that requires experts to come and rectify the damage, it is going to cost you money to make it right.
  • Cyber Extortion (Denial of Service) – The cost of ransom paid to release data.
  • Data Restoration – The cost of reloading your data in a new more secure database, etc.
  • Public Relations / Crisis Management – The more publically known your company is, the word of your data breach could reach the press or the media in your industry. You may need professional Public Relations assistance to get your business reputation back.

Third-party Privacy and Security Liability Coverage (in very general terms) insures for damages to the insured’s clients, business partners, vendors, etc. for failures or breaches of the insured company’s network security, which caused loss/damages to a third party’s systems.

If the potential costs of a Cyber Breach event scare you to even think about, you are not alone.  The good news is that with just a few short questions and your answers, we can provide you with an indication of what Cyber Security Insurance will cost for your business.  The process is quick and painless, so don’t let another day pass without asking for a quote.  Rooney Insurance Agency, Inc. is an Independent Insurance Agency.  We represent many different insurance companies, not just one brand. There are more than 60 insurers that sell this coverage in the USA, and no two policies are exactly alike.  That’s where we come in.  We are a leading provider of Cyber Security Insurance products. With many sources and highly-rated insurers available, we are confident we can provide any qualified business the best coverage and best value with a highly rated carrier.

About Rooney Insurance Agency

Established in Tulsa, Oklahoma in 1960, Rooney Insurance Agency  provides customized Business Insurance, Personal Insurance and Employee Benefits Solutions not only in the state of Oklahoma, but throughout the United States. We work to ensure that each client’s insurance coverage fits their specific needs, addresses their key risks, and protects their valuable assets. For more information on how we can help you today, contact us at (918) 582-0565.

All insurance products offered are subject to underwriting.