Prompt Action Is Critical
48 of 50 states, as well as Puerto Rico and the District of Columbia, require businesses to respond to a data breach quickly. While a specific notification timetable is absent in most states, New Jersey does require prompt action when a business becomes aware of a breach to their computer system.
When such an event occurs, the first course of action should be to notify the Division of the State Police in the Department of Law and Public Safety. Next, the impacted customers, clients, and vendors must be alerted to this compromise of data through email or other written notice. If more than 1,000 people are affected, the business owner must notify all consumer reporting agencies. The Consumer Fraud Act enforces data breach notification statutes in New Jersey.
Here’s a summary of New Jersey’s Data Breach Law.
Name of Law
Identity Theft Protection Act
Definition of Protected Information
Combination of name or other personal identifying information, PLUS one or more of these data elements:
- Driver’s license number
- Credit card number
- Debit card number with PIN, password, or access code
Who Is Subject to the Law?
Any business conducting business in the state of New Jersey.
Notification of Consumers
Willfully, knowingly, or recklessly violating the data breach notification law is an unlawful practice and a violation of New Jersey’s Consumer Fraud Act. Notification to consumers of a breach can be done in either written or electronic format. It is important to note that if a business is domiciled in New Jersey but has additional clients, vendors, or other customers outside the state, said business must observe both the notification law of New Jersey as well as the laws of the state or states where their clients, vendors, or other customers reside.
If you’re concerned about how your organization would respond in the event of a data breach, New Agency Partners can help. Contact us today to learn more about how you can protect your business.
All insurance policies are different. Be sure to review your insurance policy for specific information about coverages available to you. Nothing in this post is meant to suggest a guarantee of coverage.