The consequence of data breaches cost today's business owners an average of $6.6 million per incident, and this cost is on the rise, according to a study conducted by an independent research institute. Zurich’s policy is designed to help pay for the costs incurred while trying to recover from a data breach and to help companies protect against the potential liabilities arising out of or resulting from cyber-related incidents. In addition to data breaches, the policy provides coverage for a broad range of network security and privacy risks, such as unauthorized access or use of an insured’s computer system, alteration or destruction of electronic data and denial of service attacks. The policy provides both third party insurance including optional internet media liability and optional first party coverages.
According to Brad Gow, senior vice president of Specialty Errors & Omissions for Zurich North America Commercial’s Specialties business unit, the current regulatory environment is creating an escalating exposure for companies, with more stringent reporting requirements as well as media notification in numerous jurisdictions. At present, more than 40 states, the District of Columbia and numerous foreign jurisdictions have data breach reporting regulations with new legislation being developed continually.
“Zurich’s coverage is expansive and designed to help protect business owners from the vulnerabilities of business’ digital infrastructure,” said Gow. “Most of the technologies making today’s workforce more efficient, including smartphones, laptops, and external hard drives, are also making it easier than ever for data breaches to occur. The fact is, the vulnerability of business owners doesn’t only spring from hackers or cyber attacks. A vendor or an unhappy employee can walk off with millions of records on a USB stick.”
Zurich Security and Privacy Protection coverage provides a broad range of critical third party and first party insurance coverage. This policy was designed to help reduce the confusion that can result from dealing with multiple policies helping to close the gaps in coverage existing today.