EMC Insurance has rolled out a new type of insurance designed to protect small and midsize businesses from hackers and identity thieves.
The policies cover the cost of notifying individuals whose data has been compromised, the potential cost of defending the company if there’s a lawsuit, and identity recovery for key people within the business, among other things.
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Responding to a data breach is surprisingly cumbersome and expensive, the company said. In fact, notification alone is estimated to cost approximately $100 per affected individual, EMC said.
EMC is one of the first companies to offer this type of policy. The product became available on Feb. 1. Officials at the Iowa Insurance Commission aren’t sure how many other companies offer this type of insurance in Iowa, though experts in the industry expect the cyber insurance business to boom in coming months.
“We developed this innovative coverage to meet our insured’s most relevant needs,” said Mick Lovell, EMC’s vice president of business development. “In the event of a personal data breach, we provide those affected with assistance and recovery on all fronts, including a toll-free help line, credit monitoring and identity restoration case management. Coverage this thorough is still rare, and we’re enthused to offer it to our policyholders.”
The coverage is available in Iowa and about 40 other states.
EMC is among the top 60 insurance organizations in the country, based on written premium, and has assets of approximately $3 billion and more than 2,100 employees, roughly 1,100 of whom work in Des Moines.
