Does your company have an insurance policy that would cover the costs associated with a Security Breach?
"Security Breach" means:

(A) The unauthorized disclosure (whether due to Supplier action or inaction or third party action) of Personal Data in any format (or incidents where it is reasonable to believe that unauthorized disclosure has occurred);

(B) The unauthorized disclosure (whether due to Supplier action or inaction or third party action) of information belonging to a third party in any format that has been entrusted to your company and specifically identified as confidential and protected under a confidentiality agreement or similar contract (or incidents where it is reasonable to believe that unauthorized disclosure has occurred); or

(C) Supplier's violation of its own privacy policies or applicable data privacy laws or regulations.