A data breach is when personally identifiable information or other valuable information is compromised. You often hear about large companies having their data stolen. Some people refer to a data breach as a cyber crime, or by other names.
Remember, data breach insurance has many names. You may see it referred to as cyber liability or privacy liability or network security liability. As more carriers write this type of insurance, you may see new names used to describe the coverage.
Example of a Data Breach:
- credit card numbers are stolen
- someone from your office takes home hard drive with clients names, birthdates, and social security numbers and it is lost
- a rogue employee steals client personal information and sells it
What is cyber extortion?
Cyber extortion, in its simplest form, is when someone or a group holds valuable information for a ransom. Coverage for cyber extortion can be purchased as part of many cyber liability or data breach policies.