Data-breach insurance caters to small businesses

With the proliferation of data breaches, The Harford insurance company is selling a new data loss insurance aimed at small businesses that might be put at financial risk if they lose valuable and sensitive data.

The new coverage is an add-on to the company's existing Spectrum business-owner policy. It covers legal liability expenses and offers resources for policy holders to comply with regulatory requirements.

Other insurers offer data breach coverage, which is becoming more common as data breaches increase and along with it the cost of dealing with the aftermath. A Ponemon survey last year put the average cost of data breaches at $7.2 million.

QUIZ: The data breach quiz

More than 40 states have laws that spell out what businesses are required to do when they lose sensitive data and also sets penalties if the requirements aren't met.

The Hartford's policy pays the cost of responding to a breach, including legal and forensic measures. It also pays for notifying those whose data was affected, crisis management and the cost of advertising breaches.

It also covers legal defense and liability such as civil awards, settlements and judgments policy holders are legally obligated to pay.

Part of the coverage includes access to a Web site on being prepared for breaches. This offers advice about protecting customer, patient and employee personal information and mapping out a plan for responding to incidents. It also provides a state-by-state library of data-breach regulatory requirements.

The policies also include consulting to help with notifying appropriate parties about breaches and obtaining credit-monitoring services for people whose data was compromised and are in danger of identity theft and fraud.

Read more about wide area network in Network World's Wide Area Network section.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags securityIT managementcybercrimelegalsmbregulatory complianceData-breach insurance

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Tim Greene

Network World
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?