Coalition, a cyber insurer for small and midsize businesses, has announced a new endorsement that broadens its coverage to protect against additional violations brought under California Consumer Privacy Act (CCPA).
Coalition is offering the coverage to help businesses comply with regulations, protect against alleged violations, and pay resulting expenses and penalties.
“Like GDPR, the CCPA doesn’t just affect businesses in the region where the law is passed, but has the potential to impact any business serving customers in California, no matter where they are based,” said Joshua Motta, co-founder and CEO of Coalition.
“The law’s regulations are complex, and businesses across the country must be ready to comply with all of its intricacies. This is a huge exposure that many cyber insurance policies miss and could cost businesses significantly if they don’t adhere to it,” Motta added.
The CCPA was passed to enhance consumer privacy rights and data protection for residents of California. The law provides California residents with insight and control over how businesses handle their personal data, though many businesses are unprepared to comply. Businesses are already expected to take a hit financially on CCPA compliance alone, with estimates showing the new privacy law could cost companies a total of up to $55 billion in initial compliance costs.
The ramifications of CCPA are widespread and can cause irreparable damage to small or midsize businesses. Companies have 30 days to comply with notifications of a violation, with fines of up to $7,500 per record or individual impacted. When you consider the tremendous number of individuals affected in recent breaches, the actual fine increases very quickly.
While Coalition’s policy always shouldered that burden by responding with broad coverage for any resulting costs and liability arising from a data breach or security failure, this new endorsement includes coverage for the alleged failure to comply with certain aspects of the CCPA.
“The introduction of this law further signifies the arrival of GDPR-like regulations in the US,” continued Motta.
“This is becoming the global privacy standard, and the impacts of these laws will continue to spread.” Coalition was also the first cyber insurer to provide protection against GDPR violations.
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