Data Breach
What Is a Data Breach?
A data breach is when sensitive information, such as customer data, financial records, or employee details, is accessed, stolen, or exposed. This can happen through hacking, lost devices, human error, or malicious attacks.
Essentially, it’s any time the “lock” on your digital business information is violated.
What Insurance Do I Need to Cover a Data Breach?
To protect your business against the costly aftermath of a data breach, you need cyber liability insurance (also referred to as data breach insurance). This coverage helps your business cover the costs to respond and recover from a data breach.
What Does Cyber Insurance (aka Data Breach Insurance) Cover?
Cyber insurance typically covers the costs of cyberattacks, including investigating the breach, notifying customers, and paying to make things right with anyone affected.
Data Breach Examples vs. Insurance Coverage
| Example | What Happens | How Cyber Liability Insurance Can Help |
|---|---|---|
A hacker steals your customer’s credit card data |
Your customers’ financial info is exposed, and your business must notify every affected person. |
Covers customer notification costs, credit monitoring, and legal defense. |
Your laptop with client records is lost |
Clients’ sensitive personal or medical data is at risk. |
Pays for data recovery, investigation, and compliance with privacy laws. |
A phishing email leads to a ransomware attack |
Your website or other business systems are locked until a ransom is paid. |
Helps cover ransom payments if allowed, system restoration, and crisis PR. |
A hacker accesses your payroll info |
Employee Social Security numbers and banking info are exposed. |
Covers legal costs, employee support, and possible regulatory fines. |
How Much Does Data Breach Insurance Cost?
Data breach insurance starts from $6.58 a month with Insurance Canopy — far less expensive than paying for data breach costs out of pocket! Your exact premium cost depends on your business type and needs.
How Can I Reduce the Chance of Data Theft From My Company?
Reduce the chance of facing a data breach by following these best practices:
- Use strong firewalls, antivirus software, and encryption.
- Regularly update your software applications.
- Back up your data securely.
- Limit access to sensitive information.
- Train employees on safe email and password practices.
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