A data breach can be costly to any size business, and as these type of attacks increase so does the cost. Contrary to what you might think, only 24% of data breaches are the result of malicious or criminal attacks. Most breaches, 40%, occur from an accidental loss of sensitive information when a laptop or flash drive is lost or stolen. System glitches, even software updates that expose private data account for 36% of breaches.
It's important to remember that if you store sensitive personal, financial or medical records and these are released to the public, no matter who was controlling the data at the time, you are responsible. The result can be a chain of events involving governmental involvement, required notifications and remediation costs. You could face possible fines and penalties, from state and federal agencies, and from public entities like your credit card company as a result of being non-PCI (PCI Security Standards Council) compliant.
The costs can add up quickly. In 2013 it was estimated that the average post-breach cost per compromised record was $188. of which $64. was the average cost of remediation. If you have 1,800 customers, that's $115,200 in these costs alone. If those same customers choose not to do business with you again, figure on the remaining cost $124. per customer as lost business, lose even half of those customers, and that's another $111,600. in lost business revenue.
Globally these costs have continued to rise. In 2014 the average cost of a data breach climbed 15%. It’s no wonder that business owners with large amounts of sensitive customer information can have trouble sleeping at night, especially after hearing about the latest cyber-attack. Regardless of whether your business is storing customer information, if you’re accepting credit cards, then you need some form of cyber liability coverage. According to Visa, 85% of data breaches occur in small businesses.
If you think that your liability is limited because you are just swiping a card think again, just because someone else is processing the transaction does not eliminate your responsibility for that transaction. Did you know your merchant account agreement may contain provisions for fines and other payments to be paid by you, even if it wasn't your business or your processed transaction that caused a breach? Incidentally, these fines and fees aren't covered by most cyber liability policies.
Source: PCI Compliance Guide.org
We Need to Talk, Don't We? - Protect Yourself from the Nightmare of a Data Breach
Contact us using the quote request form, or call us at 757-420-9600 to schedule at time to discuss your cyber liability needs. We’ll be happy to review the coverage we have available as well as the cost.
Healthcare Data Sharing
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