Data breeches are on the rise and government entities are not immune to their damages. Studies suggest that the cost to notify those affected by a data breech is approximately $80 per person. Add to this the cost of credit monitoring for several years, potential fines for HIPAA violations, damage to the reputation of the government entity, and perhaps most costly, the potential for a class action lawsuit that could be heard in Federal Court where the caps for the Political Subdivision Tort Claims Act will not apply.
General liability policies do not cover the damages of a data breech. Cyber liability coverage is available and can provide valuable protections for any government entity that maintains digital files of personal information such as tax records, social security numbers and credit card information for payment of traffic tickets.