$3,000,000 spent and nothing picked up by insurance!

Sorry for the absence but things have been crazy around the office and I let blogging get left behind. While I’ve been gone there has been a ton of data breaches and other related events happening so I hope you’ve been able to keep up. While reading an article today I found one that might hit home for some of you. A data storage company suffered a breach and lost HIPAA information for a large number of patients. That information caused the client to spend over $3,000,000 dollars to comply with the breach notification laws.

The client has come back on the storage company who reported the loss to their insurance company only to find out a breach of data isn’t covered on the general liability policy. This is an instance that a cyber liability or data privacy policy would respond to. Because the broker wasn’t educated in the space, someone is going to have to come up with over $3,000,000 to reimburse the client for their expenditures. This isn’t a situation I’d want to find myself in.

To read the entire article, click here.

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