Businesses of all sizes are required to secure the personally identifiable information of their customers and clients. In the event of a data breach, New Jersey businesses are required to notify impacted customers. Such notification is costly. Ponemon Institute’s 2015 Global Cost of Data Breach Study found that the average cost of a data breach was $154 per record. Businesses can protect themselves from the unexpected cost of a data breach by purchasing cyber insurance.
Although policies differ significantly, cyber insurance generally protects businesses from the cost associated with notifying customers of a data breach and damages created by the breach itself. Covered costs can include expenses for forensic investigation, attorney fees, notification letters and offering the option of credit monitoring to affected customers. Examples of covered damages include the cost of any regulatory fines, class action settlements or judgments issued against the affected business.
If your business is considering purchasing a cyber insurance policy, the attorneys at Rubenstein Meyerson Fox Mancinelli Conte & Bern, P.A. can help. Our attorneys can review your policy and provide an overview of the proposed coverage. It is important to keep in mind that cyber insurance is a somewhat recently developed insurance product and the terms of coverage are often highly negotiable. For more information about how our firm can assist your business, contact one of our attorneys today.