The California Consumer Privacy Act (the “CCPA”) is a privacy law that provides consumer protection for residents of California. The law regulates how a business collects, uses, and discloses almost any kind of information about an individual.
The CCPA is much broader than previously enacted privacy legislation. California residents are now able, under the new law, to bring class action lawsuits against a business for data breaches. Individuals whose data has been breached are not required to demonstrate a proof of loss in order to bring suit against a company. Additionally, the CCPA significantly broadens the definition of personal information thereby increasing the likelihood that a data breach will be subject to the new legislation.
If your company is subject to the CCPA, there are many reasons to take compliance seriously. Any class action brought against your company, as permitted under the CCPA and resulting from your failure to maintain reasonable security standards in the event of a data breach, could result in statutory penalties of $100 – $750 per affected California resident (even if there is no proof of loss) as well as actual damages. Similarly, the Attorney General of California may enforce the CCPA to the tune of $2,500 per individual violation and $7,500 for each intentional violation. All told, the costs of a data breach can be staggering, and even existential, to your business. This is precisely why all businesses should consider purchasing cyber insurance.
Colony West’s comprehensive cyber insurance policy covers security failures and data breaches involving the personal information of CA residents, and our policy will respond by paying breach response costs, claim expenses, and any resulting damages.
Colony West’s policy responds by paying on your behalf claim expenses and regulatory penalties from a regulatory proceeding, or class action, arising from a security failure or data breach. This includes the associated costs to defend yourself and damages resulting from a class action lawsuit or alleged violation of the CCPA.