Data Breach and Your Damaged Reputation

This entry is part 2 of 24 in the series Data Security

It is no secret that criminals are getting smarter at using technology to their advantage.  Unfortunately, that means your business could be the victim of a data breach left to face tremendous financial costs, lost customers and a damaged reputation. When word gets out that data was compromised at your business, it may take time to convince customers that it is safe to come back.

Learn more in this video:

Cyber Liability Insurance with BrandGuard

Cyber liability insurance with BrandGuard® provides coverage for lost revenue incurred as a direct result as an adverse media report or notification to affected individuals following a security or privacy breach.

Consider this scenario:

After reporting a data breach to state officials, a lakefront restaurant in a popular vacation destination is featured in a series of news reports concerning data breaches impacting local businesses. One such report accounts the specific details of the breach experienced by the restaurant and its response to the incident. The news report airs at the start of the busy summer travel season. The restaurant experiences a significant downturn in business due to the news reports.

In this situation, Society’s cyber liability insurance with BrandGuard coverage would reimburse the restaurant for the demonstrated loss of net profit resulting from the adverse media reports.

Recovering from a data breach is a real challenge. The U.S. National Cyber Security Alliance reports that 60 percent of companies affected by a breach will go out of business within six months. This is an alarming statistic! At a time when technology and the risks associated with it affect everyone, don’t leave your business unprotected.

Read more about how to react to a data breach.

To discuss the details of cyber liability insurance for your business, contact your local Society Insurance agent.

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