September 2008 Most States Require Businesses to Report Data Breaches Many Smaller Companies Don't Know How to Respond, Face Fines for Delays As of September 2008, laws had been passed in 44 states plus the District of Columbia and Puerto Rico that require notification of security breaches involving personal, non-public information which a business controls. THOUSANDS OF DOLLARS IN FINES Generally, the laws mandate notification "without unreasonable delay" and many statutes impose civil or criminal penalties for failure to promptly disclose. Violations may cost a business thousands of dollars in fines and result in bad publicity. WHERE DO THEY START? "Even smaller businesses have an obligation to alert their customers promptly, but with limited resources they don't know where to start," said Mark MacGougan, vice president, who directs HSB's Data Compromise coverage program. WE GIVE YOU OPTIONS HSB provides the coverage through other insurers to help small to mid-sized businesses respond to data breaches. Insurance companies may include the program as an automatic coverage with the most favorable rates, or offer it as an affordable option. SO MUCH IS AT STAKE Whether or not a law applies, consumers expect prompt notification and assistance if their personal information is compromised. How well a business responds can mean the difference between keeping and losing clients. YOU WANT BROAD COVERAGE HSB's Data Compromise coverage can pay the cost of notifying people and supplying services such as credit monitoring and identity restoration for victims of identity theft. It also includes a legal review, technical, and call-center support. HSB MAKES IT EASY Identity thieves target smaller businesses, which are less protected. HSB's Data Compromise coverage offers your customers quality coverage and personal services provided by professional third-party suppliers. For more information contact HSB toll-free at 1-800-345-1122. Hartford Steam Boiler - One State Street - P.O. Box 5024 - Hartford, CT 06102-5024 Phone: 860-722-1866 - Fax: 860-722-5106 ©1996-2008 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.