Now, a data break can be explained as an incident where confidential, sensitive, and otherwise protected data can be accessed to in an unauthorized manner. A data breach can involve access to trade secrets, personally identifiable information and intellectual property. Now that we live in a digitized world where all information is now present in our computers, there has been a growing number of data breaches.
A data breach can have serious consequences, one of them being identity theft, and this is why data breach insurance has now become common so that those who have been affected by the breach are able to deal with damages. You can find a number of insurance companies that offer data breach insurance in Texas.
Data breach insurance can be defined as insurance that helps to cover the legal costs, fines, and penalties that might arise from claims related to data breaches. This is a very general definition of what comes under a data breach insurance, but the policy is actually really comprehensive and covers a number of things like:
- Dealing with claims that allege that you (the company where the breach took place) has not done enough to secure their information or placed any proper system that could have prevented the hack.
- Covering the costs of notifying all those affected by the hack, the cost of online credit monitoring and other costs that might arise due to the security breach.
- In case the hack might have been caused due to third-party negligence or because of how the software is designed, you will still need to defend yourself in case you are still being held responsible.
- All costs that are linked with replacing and recovering data that has been damaged, corrupted or lost due to the breach or cyber attack.