One new type of insurance coverage IT Risk Managers Inc., Okemos, Mich., offers is database insurance. The product covers the loss of personally identifiable information, which many Auctioneers collect from clients during registration for an auction.
IT Risk’s Larry Harb says 45 states now have “database notification laws” on the books that require Auctioneers to contact customers if personally identifiable information is compromised. He estimates each record is about a $50 liability, so, an Auctioneer with 5,000 clients in his database has a potential “exposure” of $250,000.
Personally identifiable information includes data such as credit card numbers, dates of birth, license numbers and Social Security numbers.