What is Data Privacy Insurance?

At over $200 per customer, even a small data breach can be very costly to your business.  And even if you take all the necessary precautions to protect your network, we’ve seen no business is too big or too secure to have their network breached.  To help minimize the financial and business losses in the event of a breach, your business can purchase insurance to cover these costs.  However, most standard lines of coverage won’t cover data breaches and the cost associated with them.  In a recent article in the National Underwriter Property & Casualty Magazine, they write, “general commercial liability and umbrella policies do not cover the majority of activities associated with Web 2.0 and social media liability.” [1]  To help cover these costs, a business can purchase a data privacy policy. 


What can a data privacy policy cover?

  • Unauthorized access to, use of, or tampering with data
  • Liability arising from denial of service attacks or the inability to access websites or computer systems
  • Crisis management and public relations expenses
  • Regulatory action defense expenses
  • Computer system extortion expenses and losses
  • Intentional wrongful conduct of “rogue” employees
  • Coverage for punitive damages
  • Any form of invasion, infringement or interference with the rights of privacy or publicity 
  • Business Interruption loss and/or restoration expense incurred as the direct result of an enterprise security event which causes a system failure
  • Data restoration costs
  • Legal liability, defense costs and expense reimbursement for your business for a personal identity event


[1]Hidden Risks.” National Underwriter Property & Casualty. November 3, 2008.


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