Protect Your Shop from a Data Breach with Cyber Liability Insurance!

Here is a scenario: you rent out a car to a customer. During this process, you take their name, address, credit card information and maybe even a copy of their driver’s license or social security number to keep on file. All sensitive information is stored in locked file cabinets or maybe even the company computer system that is password protected. A few days later, you realize that your system has been hacked into and customer data has been stolen. Or maybe you suffered a break-in and the file cabinets have been ripped open. You are now a victim to a data breach.

If you are a Massachusetts business then you do business in a state with one of the toughest laws in the country when it comes to protecting personal information. But MA is not alone; CT, RI, NH, and 42 other states have joined in protecting this information as well. Why is this important to know?

Because should you suffer a data breach you may find yourself having to comply with not only the tough standards as set forth in MA but the nearby state laws as well when that consumer or employee resides in another state.

So what constitutes personal information in MA? A person’s first and last name (or first initial) combined with any one of the following:

• Driver’s License Number

• Credit Card or Bank Account Number

• Social Security Number

Who do you notify and how?

• MA Attorney General’s Office

• MA Office of Consumer Affairs and Business Regulation

• Each affected or possibly affected resident

Interestingly enough the notice to consumers may require certain information that is different for every state. What a nightmare. Who pays for all this? Not to mention the bad publicity.

The first thing that should come to mind when asked this question is: does my garage insurance program include cyber liability coverage? If so, this process just got a whole lot easier. Having cyber liability in place will make sure you are compensated for unexpected expenses that are associated with a breach. These costs will directly affect your business, which may include:

• Investigation expenses

• Notification expenses

• Legal fees and court costs

• Public relations expenses

• Time spent away from business in order to “manage” the data breach

• Payment of judgments

• Loss of customers!

As you can see, the expenses will add up. Without cyber liability insurance in place, your shop may not survive this process.

To add cyber liability insurance to your garage insurance plan, contact our agency. We would be more than happy to discuss this coverage and provide you with a free quote!