Privacy Breach Coverage
Like no other time in history, businesses of every size are facing serious risks to their operations. The data that organizations need to collect simply to do business is under constant attack. Consumers expect that their data is kept secure from unwanted data exposure, but the likelihood of a data breach event occurring means it’s only a matter of time before a business becomes a victim. The consequences of unauthorized access to sensitive data stored, collected or managed by a business can have a crippling effect.
A privacy breach is a security incident in which sensitive, protected or confidential data is intentionally or unintentionally released, lost or exposed. This data may include personal identity information, such as social security numbers, credit card or bank details.
If your sensitive business data is lost or released, you may have to spend significant time and money resolving the situation and restoring your reputation and your credibility.
Now, we need to do more than just preserving our physical assets and business continuity. It means having coverage that responds to two of the fastest growing threats: consumer identity theft and commercial data breach exposures.
Most businesses think a privacy breach won’t happen to them but a privacy breach takes place every two seconds in Canada. It’s important to note that large organizations aren’t the only victims of privacy breaches; in fact 30% of all reported breaches involved companies with fewer than 100 employees. The impact on the company after a breach can be extremely serious.
– 51% of businesses report that they were impacted by service downtime.
– 42% lost productivity.
– 74% report a loss of customers.
– 59% faced litigation.
– 33% faced fines.
– 32% experienced a decline in share value.
– 13.8% lost income.
As we said before, the effects of data breaches are far reaching and can be extremely detrimental to a company of any size.
You’re probably wondering how a privacy breach happens:
There are many, many ways in which a breach can take place. Some examples are:
– A fax number is misdialed
– Computer glitches.
– Hackers or thieves.
– Lost or stolen laptops.
– Unauthorized access to computer system.
– Improper document disposal.
– Improper office equipment recycling.
– Private documents forgotten on the printer.
– Client lists deleted or sent to the wrong address, among many others.
Our insurers partner with cyber risk consultants like IDT911 provide value and add services like education, proactive protection, and incident remediation. They also offer coverages for first and third-party losses.
We believe that every business should have a cyber endorsement to be fully protected in the event of a privacy breach.
Contact us at 416-237-0436 today to speak to your broker about adding cyber liability coverage to your policy.