Businesses today are collecting and storing more sensitive infomation than ever before.  This includes confidential employee data, client credit card numbers, social security numbers, and various other types of sensitive data.   A data breach could be disastrous to a company in terms of costs to comply with state notification requirements, potential liability claims, and damage to a company's reputation.   Here are some examples of actual data breach claims:

 

-   A hospital had backup tapes stolen which contained the records of

2.2M patients.  

 

-   Two class action lawsuits have been filed on behalf of customers of  a supermarket chain, which acknowledged a data breach that exposed card numbers involved in 4.2M credit and debit card transactions, leading to over 2000 cases of reported fraud.

 

-   Hackers who accessed a shoe retailer's database obtained 1.4M

credit card numbers and the names on the accounts.   The hackers also stole driver's license numbers and checking account numbers

from 96,000 transactions involving checks.

 

 

   These are just a few claim examples, but a data breach can happen to any type of business or government entity that stores sensitive information.  Insurance brokers, wholesalers, and companies all have a significant data breach exposure as well.  Adco General recently 

purchased a data breach policy, so we recognize the seriousness of this exposure since it's excluded in most CGL and crime policies.   Minimum premiums start at $2500 for a $1M limit.   Please contact any of our brokers for more information about this coverage or for a quote.