The Hartford has introduced data
privacy coverage for software developers and technology firms to cover data
breaches.
The Hartford Financial Services Group has added First Party Data Privacy
Expense coverage, along with Cyber Extortion Expense coverage, to its FailSafe
suite of technology liability coverage.
The Hartford officials said that
although large-scale data security breaches get the attention, a breach of any
size can be costly for software developers, hardware firms and other technology
companies that have non-public personal information in their control. Data
breach laws in many states require notification and credit monitoring services
for those affected, the costs for which are incurred by the company responsible
for the breach. With the average per-record cost of a data breach at $202,
according to a 2008 Ponemon Institute study, the cost of a breach involving
just 500 records could exceed $100,000, the company said.
The Hartford’s Data Privacy
Expense coverage pays for actual expenses incurred as a result of a
policyholder’s negligent acts, errors or omissions that result in the improper
dissemination of non-public personal information, or a breach or violation of
data privacy laws, the company said.
Read the rest of this article on eWEEK.com.
Online Media 
