IT security insurance

by | Jun/2/2010

Do you carry insurance for IT security? Breaches can be costly. Insurance is just stepping up to meet this need.

If you suffer a data breach or lose a laptop, you may be required to send out letters notifying everyone who has ever done business with you of the possible loss of data.

One of my clients explained that the costs can soar to $5 per person to locate and notify people you’ve done business with. That’s $5,000 for every 1000 people you’ve served!

Additionally, there may be fines levied against you. For example,  in April 2010 the Financial Regulatory Authority fined the brokerage firm D.A. Davidson & Co. in Montana $375,000 after a hacker broke into their servers.

More and more, my clients and audience members are asking about IT security insurance to augment your protection. There is even IT data security insurance. If your insurance provider does not offer this service, or if you want to shop around, I know of an agency that does offer IT security insurance and can write coverage anywhere in the USA: Andy Burkart, CPCU, of Burkart-Heisdorf Insurance Agency. The phone number is 800-989-6174.

I am NOT an insurance professional, so I encourage you to post any information and comments on this blog.