Anyone who has ever had confidential information stolen knows the stress that follows. From credit card theft to unemployment insurance fraud, individuals can spend a huge amount of time mopping up the mess that’s left after these invasive acts. It’s bad enough to endure personal identity theft, but on a commercial level, the stakes can be much higher, and the repercussions can be enormous.
Corporate data breaches are far-reaching. They involve any security event where an unauthorized person or entity illegally gains access to sensitive data. This can range from Social Security numbers to bank accounts, healthcare information or a slew of business-related data, such as customer records, financial reports and intellectual property. How common is this insidious act? A 2022 report generated by the IBM Corporation estimates that the average data breach costs a company about $4.35 million. This is certainly an expensive problem! Moreover, it’s a widespread problem, with about 83% of companies stating that they have experienced at least one incident, according to IBM.
How can a company—big or small—combat such a threat? The answer is simple: powerful data breach insurance. eMaxx, an industry leader in this area, understands the nuances of this specialized data breach insurance coverage. eMaxx partners with companies to proactively draw up policies that put the insured in control of their financial destiny by customizing programs to prevent incidents before they occur and mitigate those that have happened.
For companies contemplating this protection, a likely question is: what is data breach insurance? It’s important to note that the word ‘breach’ is often used synonymously with ‘cyberattack.’ However, they are not interchangeable. Data breaches pertain to any security issue where confidentiality has been compromised. So if a company experiences a ransomware attack, and it hijacks customer data for a price, that is a breach. However, if a website is simply overwhelmed, that is not considered a breach.
Data breach liability insurance can give organizations of every type a sense of confidence and peace of mind. From government entities to nonprofits and public and private businesses, no place is immune. Recent headline news corporate victims include Yahoo and Colonial Pipeline. Financial, healthcare-related and government organizations are particularly vulnerable.
The benefits of working with eMaxx to secure insurance for data breach is the unparalleled, winning combination of risk management and state-of-the-art systems and software. Because eMaxx is a tech-enabled provider of commercial captive insurance, it offers top-of-the-line systems and software applications, along with tested incident response plans. Its risk management and technology services have helped companies across the U.S. better prepare for, respond to, manage and even avert threats. Clients range from medical facilities to brokers, car dealerships, regional banks, credit unions, benefit administrators and retails stores. From preparation to litigation, every base is covered.
Don’t try to handle the massive technicalities of data breach insurance without the expertise of a leader in the industry. Partner with the best. Contact eMaxx today.