According to the Identity Theft Resource Center, so far this year there have been more than 530 data breaches throughout the U.S. While the individuals affected aren’t held liable for any fraudulent charges on stolen account numbers, their loss of personal information is definitely at stake, which means if it was your client that experienced the network security breach, they are likely to get sued.
In an earlier blog post we briefly explored how your clients could go about recovering from a breach, highlighting how they could not only potentially reduce their risk of facing a lawsuit due to the breach, but also repair their reputation with their customers.
Many business owners assume that the right way to handle a security breach is to immediately inform their customers of what’s going on, however insurance experts recommend against being too hasty, stating that business owners should be able to answer the following questions before going public.
- What happened?
- Why did it happen?
- What can your business do to avoid this problem in the future?
- What does this network security breach mean for customers?
Insurance professionals also recommend that after a network security breach, businesses make good on any promises they made, such as providing credit monitoring for a period after the breach. It’s also important to take the appropriate steps to prevent the security breach from occurring again, and show the public that the business has taken affirmative actions and has learned from the experience.
Looking beyond the network security breach itself into loss recovery is important in any industry. At PLRisk Advisors, our Privacy and Network Security Coverage is the solution to helping your customer manage and protect against risk. Please contact us today for more information at (855) 403-5982.