General liability insurance may not cover the costs associated with cyber
security and the quality of your security controls can affect the cost of
cyber liability insurance. The average cost of a single data breach is approximately
$204.00 per lost record. Learn what you need to know before disaster strikes.
Examples below illustrate where such breaches can cost you:
Unauthorized Access: Computer hackers gained
access to computerized cash registers of a retail operation and stole
credit card information of 5,000 customers, which caused fraudulent purchases
around the world.
Theft of Digital Assets: 365,000 client
records were exposed when a consumer reporting agency had data stolen.
Back up tapes, laptops and disks containing social security numbers, demographic
information and some client financial data were some of those documents
stolen. The organization and state attorney general settled providing
clients with free credit monitoring, credit restoration to clients that
were victims of identity fraud and reimbursement to clients for direct
losses that resulted in the data breach. The organization was required
to revamp its security policies, implement technical safeguards and conduct
random compliance audits.
- Privacy Breach: An investigative and security agency employee
improperly disposed of approximately 4,000 client cases in violation of
security numbers, credit and debit card account numbers, names, addresses,
telephone numbers and sensitive investigative and security information.
The agency settle the claim with the state and paid fines and penalties
imposed by the state in the amount of $890,000 in customer redress funds
for credit monitoring on behalf of all victims involved.
- Human Error: An employee of a private high school mistakenly
distributed names, social security numbers, birthdates and medical information
of about 1,250 students and faculty members via email creating a privacy
- Cyber Extortion Threat: A US based information technology
company was contracted with an overseas software vendor that left universal
"administrator" defaults installed on a company's server. A "hacker
for hire" was paid $20,000 to exploit such vulnerability. The hacker
advised if the requested payment was not made he would post millions of
registered users records on a blog for everyone to see. The extortion expenses
and monies are expected to exceed $2,000,000.
- Malicious Code: A computer worm was released by a juvenile
directed infected computers to launch a denial of service attack against
a regional computer consulting & application outsourcing firm. The infection
caused an 18 hour shutdown of the firms computer systems. It costs the company
an approximated $875,000 to repair and restore their system as well as interruption
Our focus is upon:
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Matching your needs with the right kind of coverage
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