Why Cyber Liability Insurance is a Must in 2021 | Colony West
cyber liability insurance 2021 April 13, 2021

Why Cyber Liability Insurance is a Must in 2021

Uncategorized/By Julien/0 comments

What is the CCPA & Why Cyber Liability Insurance is a Must For Your Business?

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.

 

What is different about the CCPA?

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.

 

Why should your business take compliance seriously?

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.

 

What does Cyber Liability Insurance cover?

 

 

SECURITY FAILURES & DATA BREACHES

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.

 

 

CLAIM EXPENSES, FINES & PENALTIES

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.

 

 

PRIVACY POLICY COMPLIANCE

While our base regulatory coverage already addresses claims that arise out of a security failure or data breach, Colony West now has an endorsement that is crafted to also step in and assist insureds for their failure, without the knowledge of a Senior Executive, to comply with certain provisions of their privacy policy which allegedly violates the CCPA.

 

Colony West provides this coverage at full policy limits

(up to $10 Million) and at highly competitive rates!

If you’re ready to get covered, request a fast, free quote today!