Cyber Liability: Privacy Regulatory Defense & Penalties Coverage

The U.S. National Cyber Security Alliance reports that 60% of companies affected by a data breach will go out of business within six months. At a time when technology and the risks associated with it affect every person and business, Society Insurance provides leading-edge Cyber Liability insurance with comprehensive data security and privacy coverage.

What is Privacy Regulatory Defense Coverage?

Privacy Regulatory Defense and Penalties provides coverage for regulatory fines and penalties
and/or regulatory compensatory awards incurred because of privacy regulatory proceedings or
investigations brought against you by federal, state or local governmental agencies.

Consider this scenario:

A restaurant chain discovers malware operating on point-of-sale (POS) devices at several locations. The malware is designed to access payment card data, including customer names and card numbers, from cards used at the POS devices. The restaurant chain discloses the breach in a press release, and a customer affected by the breach subsequently files a consumer complaint with the Federal Trade Commission (FTC). The FTC investigates and finds that a lack of technical safeguards contributed to the theft of credit card data. The FTC orders the restaurant to pay civil fines and penalties for unfair data security practices.

Who Pays for Costs Associated with a Data Breach?

Cyber Liability insurance would pay for the defense costs, fines and penalties incurred in an FTC investigation. Small Details like this, make a Big Difference.

To learn more about this important coverage, contact your local Society Insurance agent.


As a mutual insurance company, we operate and exist for the benefit of our policyholders. For more than 100 years, Society has been helping businesses overcome the unexpected with comprehensive coverage packages and outstanding claims handling, underwriting and risk management.

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