If your company retains or stores sensitive personal data, your company could be financially ruined if that data is compromised. (Personal information includes names, address, dates of birth, social security numbers, credit card numbers, etc.)
How's that possible?
Consider these past security breaches, each of which could easily happen to your company exposing all your customers to identity theft and credit problems...
A hacker breaks into your network, steals all your customer data, and threatens to post it publicly or sell it to other bad guys
An employee's laptop or USB flash drive is stolen containing your customers' information
A computer malfunction or employee action accidentally distributes customer information in a mass e-mail, on printed material, or posts sensitive data on a website
So now you have a privacy data breach, what do you do?
Do you know who to turn to? What's your next step?
To clean up the mess, here are a few steps your company may have to take:
At least 45 states have notification laws, declaring your company must notify all your customers of the security breach
You'll have to pay for call centers, drafting written alerts and press releases, printing, postage, and advertisements/publications to inform your customers of the security breach
With your customers' information personal information exposed, your company will be expected to pay for credit monitoring services for each of them
Because your company had a duty to secure customer information, you could face lawsuits for this breach of duty, resulting in hefty legal fees and years of litigation
If a hacker got hold of the sensitive data, it would not be uncommon for that hacker to hold the information hostage in exchange for money
In such cases, your company may have to pay an extortion fee (ransom) of hundreds of thousands of dollars, possibly more
Because there was a breach of your security system, your company will now have to pay for a digital forensics analysis to determine how the breach occurred, and new security systems to guard against future instances will have to be installed
During this whole process, your business's day-to-day operations will be interrupted while security breach issues are cleaned up
Lost Time = Lost Revenues
Could your company afford to pay these costs?
Typical commercial property and general liability insurance policies do NOT cover any of these losses, so you'd have to pay them all out-of-pocket!
With only 1,000 records, a data loss scenario could possibly cost you $200,000. And 5,000 compromised records could cost your company nearly $1,000,000! These costs don't account for the possibility of cyber extortion!
And that's only the immediate aftermath. Current and future customers are in jeopardy—for fear their personal information could be compromised. Public companies have seen their stock prices plummet from negative press.
Discover Cyber Risk Solutions. We are experts in the field of cyber privacy and security insurance, helping you secure your company's financial future by offering policies to protect your digital assets. Don't rely on luck that a breach won't occur. Insure yourself now before this financial disaster strikes!