As we’ve said before and you probably know by now, cyber security is something your business HAS to address and put in the necessary precautions to protect your business from threats. In order to achieve this, we need to learn about the threats it makes to our businesses. Let’s take a look at Third Party & Customer Data risks within cyber security.
What is Third Party Data? According to verfacto.com, third party data is “information collected by a producer across other company’s websites, apps, registration, etc.” Some examples would be weather data & public demographic data. This is unfortunately where a lot of companies will ask for your personal info (like email address, age, and birthday) and sell it to other companies for their profit only.
What is Customer Data? According to shopify.com, customer data is “the customer information that you’ve collected in the first party context.” Some examples of this would include information you’ve collected from your websites, apps, physical stores, or other ways customers have shared their information directly with you.
What’s unique about the privacy and network security coverages is that both first-party costs and third-party liabilities are covered: First-party coverage applies to direct costs for responding to a privacy breach or security failure, and third-party coverage applies when people sue or make claims against you, or regulators demand information from you.
Common first-party costs (or customer data) when a security failure or data breach occurs include:
Forensic investigation of the breach
Legal advice to determine your notification and regulatory obligations
Notification costs of communicating the breach
Offering credit monitoring to customers as a result
Public relations expenses
Loss of profits and extra expense during the time that your network is down (business interruption)
Common third-party costs include:
Legal defense
Settlements, damages and judgments related to the breach
Liability to banks for re-issuing credit cards
Cost of responding to regulatory inquiries
Regulatory fines and penalties (including Payment Card Industry fines)
Our professional staff here at Danskin would be more than happy to sit down with you and discuss your options for cyber security for your business. If you’d like to learn more about cyber insurance or just have some questions about how it can benefit your business, visit our website or give us a call at 732-449-3800.