The past several years have seen a number of headlines announcing data breaches of credit card and debit card information at major retailers such as Target, Home Depot, SuperValu, Kmart and Staples. Data breaches reported by JPMorgan Chase, Dow Jones, the U.S. Office of Personnel Management and many other companies have affected millions of individuals.
Cybercrime is one of the fastest-growing threats to business operations and one that can result in expensive claims and lawsuits. To address this type of exposure at your self storage operation, some insurance companies now offer optional data compromise coverage.
The coverage limits and specific services provided vary depending on your insurance provider and may include coverage to provide a variety of assistance to policyholders pertaining to a wide range of possible data breaches such as electronic theft or hacking. Legal services, forensic information technology review services, notification to and services for affected individuals, credit reporting and monitoring and identity restoration case management services also may be included.
In most cases, data compromise coverage may be added to your existing commercial insurance policy for a relatively affordable premium, especially considering the costs a self storage business may incur in attempting to recover from a data breach. In addition, claims and lawsuits may be an expensive result of a breach that results in the exposure or compromise of customers’ personal or financial information. Your independent insurance agent is an excellent resource to help identify potential exposures and suggest insurance coverage for your business.
About the Author
Mike Schofield is the President and CEO of Phoenix-based MiniCo Insurance Agency, a provider of specialty insurance products and publications for the self storage industry since 1974. MiniCo has partnered with London-based Lloyd’s to offer specialty property and deductible buy-back solutions for insuring the most challenging self storage properties. MiniCo Insurance Agency, LLC, is a member of the Aran Insurance Services Group. For more information, visit MiniCo.com.