Is your company at risk for a cyber liability or data loss suit?

If you keep personal, financial information or medical records in paper of digital form you are at risk.  Lost laptops, network security breaches and even paper records thrown into a dumpster are in the news lately and new laws are now in place.

Recent losses include a stolen computer with 20,000 names, dates of birth and social security numbers.  A senior data analyst stealing and selling 17 million customer records.  45.6 million credit / debit card numbers stolen over a 19 month period and back up tapes stolen from a storage facility.

Areas of concern: Vendors & outsource contractors, Wireless Access Breach, Hackers & viruses and Rogue Employees.  New laws mandate contacting each client without reasonable delay – the average cost is $200 per lost record.

New Red Flag Rules take effect June 1, 2010.  These rules apply to any establishment (retail, auto dealers, health care providers) extending credit.  HIPAA rules concerning medical records include fines of up to $50,000 per loss.

Costs per record averaged $202 in 2008 with civil penalties of up to $2000 per record.

General liability policies provide no coverage as data loss is not ‘tangible property’.  Likewise, crime policies, professional liability and ISO property coverage does not apply.

Fortunately, we have a number of specialty security policies that have been designed to provide for this coverage gap.

Contact us today for a free analysis of your business and quote.