Call Us Today 888.279.9701
Home Page Email
Health &
& HR

 Customer Data and Legal Liability

Businesses have a lot of responsibilities. Running a business means you must provide customers with an excellent product, pay employees on time and pay off your debts. However, there are other responsibilities you may not think of as often that are also very important. This includes protecting the private information of customers that is stored on your servers. Not doing so can have harsh consequences for your company.


With that in mind, below are five things companies should know about customer data and legal liability.

1. You Will Be Hacked

Being hacked as a business is almost a certainty in the current climate. It really doesn’t matter if you’re a large national chain or a tiny small business. According to a news report, nine out of ten companies are hacked every single year. It’s not really a question of if your business will be hacked. It’s a question of when. You have to be preemptive about protecting customer data or it will be stolen.

2. Hacking Is a Billion Dollar Industry

The reason why criminals hack companies in most cases is to obtain customer data such as names, addresses, credit card numbers and more. They don’t do this for fun. They do it produce a profit. Such information is often sold on the black market with the use of bitcoins, a digital form of currency that is practically untraceable. The information is then used to steal those customers’ identities so money can be spent and things bought under their names. According to the US Justice Department, identity theft cost Americans $15.5 billion in 2014.

3. You Can Be Held Liable

You may think hacking is a crime only the hacker will be held responsible for. However, this isn’t always the case. Companies are often held responsible through lawsuits from customers victimized by such hackings. Many of the biggest companies have been sued over customer data hacking and settled for millions. If you have experienced a hack, you should probably contact a lawyer with experience in that area of the law.

4. You Have the Duty to Protect Customer Data

You must take preemptive steps to ensure that customer data remains protected while on your servers. If it’s found out that data was misused, you may have committed a crime. There are many laws that mandate exactly how and when customer data can be used and exchanged.

5. You Will Be Hacked More than Once

Sadly, if you have already been hacked, the worst of it may not even be over. According to statistics, you are quite likely to be hacked again in the near future.

Companies must take action to secure customer data in their networks. It’s one of the responsibilities of being a business in the 21st century. If you don’t, that data will certainly be stolen. If that occurs, you could be sued for millions.

If you haven't explored cyber liability insurance and are interested in discussing your coverage with an insurance expert, contact us here and we can have someone from our team get back to you.


Brink News

Tad Nelson

Washington Times

Posted 1:19 PM  View Comments

Tags: cyber, hacking
Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive

View Mobile Version
Get a Quote
Interested In
Zip Code
Workers Compensation
Commercial Real Estate
Restaurant/Bar & Tavern
Ag Crop/Rainfall
Oil & Gas
Professional Liability
Health & Benefits
Payroll & HR
Tech/Cyber Liability
Auto Service
Business/General Liability
CrossFit Deco
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
Connect With Us:
Social Social Social Social Social
Alliance Insurance Group
710 Golden Ridge Rd., Suite 120
Golden, CO 80401

Phone: 888.279.9701