Accessibility Statement Skip Navigation
  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing
  • Login
  • GDPR
  • Create a Free Account
Return to PRWeb homepage
  • News
  • Resources
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
  • Business & Money
      • Auto & Transportation

      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Hamburger menu
  • Cision PRWeb provides efficient communication tools to continuously engage with target audiences across multiple online channels
  • Create a Free Account
    • ALL CONTACT INFO
    • Contact Us


      11AM ET Sunday – 8PM ET Friday

  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR

Data Breaches, Privacy and Cyber-Insurance - "What You Need To Know To Protect Your Business", a report by OlenderFeldman LLP
  • USA - English


News provided by

OlenderFeldman LLP

Dec 28, 2013, 03:00 ET

Share this article

Share toX

Share this article

Share toX


Union, NJ (PRWEB) December 28, 2013 -- In light of the recent front page issues involving data breaches and data leakage – Edward Snowden, the NSA and the PRISM Program from the governmental side and Facebook's year-long data breach which exposed the information of over 6 million users on the private side – it seems like an appropriate time to once again emphasize that that it is crucial for all companies to proactively address cyber data security and privacy issues: the question is not if these issues are going to affect business but when and to what extent.

If you have employees, it is imperative to recognize that many significant privacy and data breaches come from untrained employees who are the primary target of various schemes and malware contained on the Internet and otherwise.

Post this

In recent months, there have been countless examples of large data breaches, both in the government sector and in the private sector. Because of the high profile nature of these breaches and the possible criminal implications associated therewith, many smaller business owners seem to think “Oh well, that will never happen to me.” This attitude is a mistake. These issues are not limited Fortune 500 companies. Cyber risk is an issue for small businesses. In fact, studies have shown that hackers specifically target smaller businesses because they have less resources to defend against cyber-attacks.

All businesses retain information which, if breached or inadvertently disclosed, could cause significant damage to that company, both in terms of pure financial implication and loss of goodwill in the marketplace. Companies of all sizes retain records in both paper and electronic form which often contain sensitive personal information that would allow someone to trace an individual’s identity, such as their Social Security number, date and place of birth, maiden name, etc. This information is broadly referred to as Personally Identifiable Information (“PII”) and is given significant protection under the law. Beyond this broad category, there are a variety of other subsets within PII which are often subject to specific, more stringent rules related to protection and disclosure throughout the business and legal spectrums. For example, Protected Health Information (“PHI”) – any information about health status, provision of health care, or payment for health care that can be linked to a specific individual – is vigorously protected under both state and federal law.

The purpose of this article is not to scare businesses, but instead inform them before an incident so that they too may be at risk with respect to these issues, and that there are options available regarding data breach prevention and remediation. As with anything else, the proper way to manage a large volume of information is through proper proactive (as opposed to reactive) controls. These controls include consultation with appropriate advisors including lawyers with expertise handling privacy, e-commerce, FTC regulatory complaints, litigation and intellectual property related issues as well as insurance brokers who can assist with an evaluation of whether or not a company should purchase insurance policies to cover the fallout from data breaches, cyber-liability or other related issues.

Data breaches are caused by a variety of sources including cyber-crime/hacking, system error and, shockingly enough, human error. There are countless recent examples related to an employee losing a computer or leaving a thumb drive with customer information laying around for public consumption. If a company has employees, it is imperative to recognize that many significant breaches come from uneducated employees who are the primary target of various schemes and malware contained on the Internet and otherwise. Even more troubling, though many companies very often have privacy policies and guidelines in place – which if not should be priority number one in response to this article – response also becomes an issue. Employees inadvertently cause breaches and there is insufficient protection or protocols in place to address these incidents.

The fallout from these breaches can be many tiered and cause substantial damage from both a financial and good will perspective. First, if the information is trade secrets or sensitive business information, it could have a competitive impact on the business. Additionally, if PII is compromised, a company may have to have to put in place credit monitoring services and other avenues for each record breach to help mitigate the damage caused by any disclosure of PII as well as restore customer confidence in the business. It is often prudent to understand how data breach insurance can help healthcare organizations mitigate HIPAA fines prior to an incident. Moreover, with respect to cybercrime, a Distributed Denial of Service Attack (“DDoS”) attack can take down a company website and affect the ability to run a business effectively on a going forward basis -- especially if the e-commerce platform is the lifeblood of the operation. In order to give a rough estimate of data breach costs, in the “2013 Cost of Data Breach: Global Analysis”, the Ponemon Institute stated that the average cost of a data breach is $136 per record globally and $188 per record in the U.S.

As briefly intimated above, the best way to deal with data protection is on a proactive basis. Before an incident happens, a company should consult with tailored team of advisors, including data privacy attorneys like OlenderFeldman LLP, to help develop reasonable data security policies and procedures which include the monitoring and auditing of the policies on the front end as well as the encryption of PII. After these consultations, companies should take great care to educate and train employees about the policies so as to make them aware of the issues before they arise.

Of course, however comprehensive a company's protection may be on the front end, breaches can still occur. Post breach, there are two factors that will help a company address issues most quickly and efficiently. First, because a company was proactive and hired consultants to address these matters at the outset, the security plan should help carry it through the difficult times. To ensure effectiveness, this program should be regularly monitored and tested within an organization and each company should designate employee contacts within the organization to implement and effectuate the security program.

Second, there are a burgeoning number of insurance products designed to protect companies in the event of a breach and, for that matter, generally protect the public face of companies as the inevitable cyber expansion continues. There are a variety of coverages available which include coverage for loss of assets, business interruption, cybercrime/terrorism, D & O and privacy liability insurance and social media coverage, among others. As each business is different, it is crucial for each company to consult the right advisor such as Cyber Data Risk Managers LLC in order to be property informed about this vital piece of protection in the event of a data breach.
Data Breaches are here to stay and as each company’s cyber presence increases, it is crucial to proactively plan to address the same as opposed to reactively deal with them in the back end which could significantly harm a company's business. The involvement of trusted counselors like OlenderFeldman LLP and Cyber Data Risk Manager LLC is crucial to the proper protection and ultimate success of businesses in the event of an unfortunate data breach.

If you have any questions about the legal or practical implication of these issues, please contact Christian Jensen, Esq. ([email protected]) and Aaron Messing, Esq., CIPP ([email protected]) of OlenderFeldman LLP at (908)964-2485. Additionally, to have a fully informed discussion about the full range of cyber insurance or IP related products, please contact Christine Marciano, CIPP ([email protected]) of Cyber Data Risk Managers LLC at 855-CUT-RISK.

Aaron Messing, Esq., CIPP, OlenderFeldman LLP, http://www.olenderfeldman.com, (908) 624-6293, [email protected]

Modal title

Contact PRWeb

  • 11AM ET Sunday – 8PM ET Friday
  • Contact Us

About PRWeb

  • About PRWeb
  • Partners
  • Partnership Programs
  • Editorial Guidelines
  • Resources

Why PRWeb

  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing

Accounts

  • Create a Free Account
  • Log in
  • Contact Us

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Legal
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 Cision US Inc.