risk management: tip of the week

Data Compromise Coverage

Over the past several years, data breaches of credit card and debit card information at major retailers and many other companies have affected millions of individuals. Cybercrime is one of the fastest-growing threats to business operations and one that can result in expensive claims and lawsuits. To address this type of exposure at your self-storage operation, some insurance companies now offer optional data compromise coverage.

The coverage limits and specific services provided vary depending on your insurance provider and may include coverage to provide a variety of assistance to policyholders pertaining to a wide range of possible data breaches such as electronic theft or hacking. Legal services, forensic information technology review services, notification to and services for affected individuals, credit reporting and monitoring, and identity restoration case management services also may be included.

In most cases, data compromise coverage may be added to your existing commercial insurance policy for a relatively affordable premium, especially considering the costs a self-storage business may incur in attempting to recover from a data breach. In addition, claims and lawsuits may be an expensive result of a breach that results in the exposure or compromise of customers’ personal or financial information. Your independent insurance agent is an excellent resource to help identify potential exposures and suggest insurance coverage for your business.

For more tips, sign up for the quarterly e-Risk Management newsletter. It's free!

Sincerely,

Mike Schofield

Mike Schofield
President & CEO

MINICO INSURANCE AGENCY, LLC
Member ARAN Insurance Services Group

10851 N. Black Canyon Highway, Suite 200, Phoenix, AZ 85029