In our previous post, we discussed the major risks that businesses face when it comes to cyber liability. It’s anyone’s worst-case scenario to experience a breach and suffer the financial and legal consequences of an attack. However, businesses have an obligation to their clients and credit reporting agencies in these scenarios. In this article, we will explore the laws that pertain to Indiana business owners, regardless of industry, when they experience a cyber-attack. As a reminder, your first line of defense should your firm experience a breach is a Indianapolis Cyber Liability Insurance policy.
What information qualifies as a breach?
Individual’s first and last name OR first initial and last name AND one or more of the following:
- Driver license number
- State identification card number
- Credit card number
- Financial account number or debit card number
Who must be notified?
Indiana law requires that the following clients and agencies must be notified:
- Any client whose information was stolen or might have been stolen.
- Credit reporting agencies.
- Attorney General
If a client’s information was compromised and they are not residents of Indiana, their state reporting laws apply to your breach, as well.
The breach must be reported immediately once the security of the networks is reestablished and the full scope of the attack has been discovered. The only other reasonable delay that qualifies for procrastinating a report is if law enforcement has advised you not to. Otherwise, the notification process must get underway immediately.
Bear in mind that penalties apply to firms and businesses that fail to comply with these laws. For example, they can be fined up to $150,000 per deceptive act and spark an investigation by the attorney general, generating more fees in the future.
About Walker & Associates Insurance
If you’re not sure if your insurance is sufficient, it’s smart business to have your risks evaluated by professionals you can trust. Since being founded in 1960, Walker & Associates has embraced a “service is first” philosophy. Our team is focused on ensuring that each client receives individualized guidance to preserve their assets and control their expenses. Our strong relationships with international, national, and Indiana insurance companies allow us to negotiate the best coverages, terms, and pricing for our clients. Contact us at Walker & Associates Insurance, (800) 213-7126, for all of your business and personal insurance needs.