Privacy Liability: Understanding What It Is and Claim Examples
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Turn on the news today and you hear story after story of data breaches, stolen credit cards and identity fraud. But for each privacy breach you read about, there are thousands of others that don’t appear in the news.
In years past, only institutions like banks or hospitals were concerned about the release of private data, but with an ever-increasing reliance on computer systems, the risk can be just as severe for a manufacturer. Whether it’s a client’s bank routing information, your employee records or confidential information about a potential asset purchase, chances are you have many more sensitive records than you think.
Privacy breaches aren’t just an electronic phenomenon, either. A privacy breach can result from something as simple as writing an account number on a piece of paper or failing to shred sensitive documents. In fact, a large portion of privacy breaches happen from the simplest of mistakes: employees leaving behind briefcases or laptop bags.
When a breach does happen there’s a lot more to consider than you may think. For instance, each state has separate rules regarding your duty to notify and compensate affected individuals. Even though a customer purchases your product in one state, if they live in or are domiciled in another state, then you must abide by all applicable laws. For a manufacturer whose products are countrywide, or even worldwide, navigating these statutes alone is a costly affair.
Familiarity with different laws and scenarios is one of the benefits you get when insuring this type of risk. Oftentimes people simply think of insurance as a way to pay for something, but with specialty coverages, you get a lot more such as the support of individuals, legal counsel and other resources that deal with privacy breach situations every day.
With the wide variety of communication methods and data storage used today, it’s easy to imagine how any business can easily suffer a data breach. But just like the threat itself, insurance products have evolved to consider these ever-expanding possibilities; from plain old file cabinets to cloud computing, privacy liability is an essential part of your risk management plan, and Assurance is here to offer you the tools to minimize risk. Your liability for privacy isn’t an upcoming threat – it’s here and increasing.
- Cyber & Privacy Liability: Part 1 Webinar (8/27)
- Cyber & Privacy Liability: Part 2 Webinar (9/10)
- Plugging the Electronic Data Gap
- It’s Not About the Money: Sony’s Cyber Attack
- Manufacturing Blog
- Manufacturing Industry Page
- Manufacturing Webinar Replays
- Manufacturing Library Resources
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