Learn to Recognize the Warning Signs and Prevent Cyber Crime
Think your business is reasonably safe from a cyber-attack? Think again. The threat is so widespread that there is an entire black market built to arm hackers with the tools they need to breach your systems.
The good news is that there are a number of steps your business can take to not only protect your employee and client data, but also to demonstrate the level of diligence that is critical to your customers and insurers. Click here to download our free e-book: Prepare Your Business For a Cyber-Attack.
In addition to the e-book I want to share with you the results of the NetDiligence 2014 Study of Cyber Claims. This is their fourth annual study about data breaches and the claim losses they sustain. In the study they analyzed 117 data breach insurance claims in a variety of business sectors. They estimate this represents 5-10% of all claims filed. Here are some of the highlights:
1. Personally Identifiable Information was the most frequently exposed data followed by Personal Health Information
2. Hackers were the most frequent cause of loss followed by staff mistakes.
3. Healthcare was the sector most frequently breached followed by financial services
4. Small revenue (under $2 billion) companies experience most incidents
5. The average claim payout was $733.109. The average for a large company was $2.9 million, for healthcare it was $1.3 million
6. The average cost per record cost was $956.21
7. The average cost for Response Costs was $366,484
8. The average cost of legal defense was $698,797
9. The average cost of legal settlement was $588,520
10. Breach response costs are 30% higher when no insurance is in place.
This study further emphasizes the risks and the key role that insurance can play.
