Arbella to offer data-breach insurance

QUINCY, Mass. – Arbella Protection Insurance will now offer coverage for data breaches, thanks to a newly announced partnership with Identity Theft 911, a business located in Scottsdale, Ariz., and Providence that specializes in managing data breaches.
Arbella’s insurance coverage will reimburse businesses for the costs of legal expenses and notification of victims and third parties after a data breach. The insurance package will also provide Identity Theft 911’s consulting services on how to prevent and manage data breaches.
“Arbella’s data breach coverage gives small business customers the peace of mind that they’ll be prepared in the event that a breach should happen,” said Eileen Currie, Arbella vice president of commercial lines, in a statement. “We’re committed to providing swift solutions to help safeguard and restore our customers’ reputations and to offering help and protection before and after a breach.”
The cost of a data breach to an organization increased to $7.2 million in 2010, a 7 percent increase from the year before, Identity Theft 911 said, citing data from a study by Ponemon Institute.
“2011 has been the year of the data breach,” said Matt Cullina, CEO of Identity Theft 911, in a statement. “With giants like RSA and Sony being shut down by bedroom hackers, it demonstrates that no business is immune to this exposure.”
Arbella Insurance Group offers business insurance in Rhode Island, Massachusetts, Connecticut and New Hampshire, and personal insurance in Massachusetts and Connecticut.
Identity Theft 911, used by 13 million households nationwide, said it has helped manage data breaches for more than 150,000 businesses.