Data breaches and ID theft a threat to every business

Smaller companies need insurance coverage to respond

Identity thieves had one target in mind when they broke into the office of a local tax service and stole the computer which stored the personal and financial information of its customers. Checks and other valuables were left untouched once the criminals had their prize — the private data that individuals provided for their tax returns.

There’s a lot to lose

Law enforcement officials urged the people who were affected to contact their banks and place fraud alerts on their credit files. The local accountant offered a $5,000 reward to identify the perpetrators, but the offer couldn’t repair the damage to his business and reputation as clients worried about potential identity theft and personal loss.

The risk is real

Big or small, every size business that keeps personal information on customers, employees and others faces a significant risk of a data breach. In fact, about half of all data breaches are reported by smaller businesses and institutions, which are less likely to have the resources and expertise to respond than would a larger company.

Lost customers, lost income

The failure to handle a data breach properly can be devastating. In addition to lost customers and income, 46 states, plus Puerto Rico and the District of Columbia, require that individuals be notified when their personal information is breached. Consumers expect a business to provide free services to help prevent identity theft and fraud.

Where do you begin?

Yet, how many smaller companies and institutions would know how to respond when personal information is lost, stolen, or mistakenly revealed? Most are unprepared. Worse, many are unaware of their exposure to a data breach and their legal obligations to customers, employees and others when private records are compromised.

HSB has it covered

HSB provides Data Breach coverage that is affordable and specifically designed for smaller businesses and organizations. Our coverage can help pay to cover the cost of mailing notifications and providing credit monitoring and identity restoration services for victims of identity fraud. We also offer legal defense and liability coverage.

Learn more about our program

Data breaches are no longer just a problem for big businesses. How a business responds can mean the difference between keeping and losing clients. Contact your HSB representative for more information about HSB’s Data Breach program.