If you use the internet, computers or mobile devices, your computer is at risk for a data breach, and you need cyber liability coverage. Simple as that.
What’s at risk? Beyond a damaged brand, it could be nearly $674,000 -the average cost of a single cyber breach in 2015 according to NetDiligence’s latest cyber/data breach claims study. Ultimately, the cost of each lost record per this study came out to an average of $964. That’s a lot of money – nearly $10,000 even if you only had ten records compromised!
Of particular mention is the fact that cyber criminals are not fixated on only large organizations – smaller companies reviewed in the study accounted for the most claims. Those with revenue less than $50 million accounted for 28 percent of reported incidents. Symantec, a sponsor of the report, theorized that this happens because “These organizations tend to be operating with the tightest budget for security and staff, they have business connections to larger companies through partnerships and products, and the data they are storing and transmitting is still very useful to nefarious individuals.”
Beyond company size, cyber criminals don’t care what industry you occupy either. They simply want data. And if you have data, you have risk. NetDiligence’s research revealed that the loss of personal identifiable information made up the most claims (45 percent). Nearly a third involved hackers, and an earlier MJ blog revealed how your own employees add to this risk (why education and training is so important). Your exposures only escalate with human error, remote employees, a malicious former worker intent on causing damage, a lost mobile device, risky technology at a vendor or supplier, infected downloads or USB devices, weak passwords, open wi-fi networks, etc.
Yes, this list is overwhelming. Yes, the costs of a data breach aren’t getting cheaper. This is the new normal in business.
MJ is ready to help with a comprehensive cyber risk management approach, including both proactive security measures and cyber liability risk transfer products. If you’re ready to get started, just click here. If not, keep that checkbook handy; an expensive data breach claim could be waiting.
To whom it may concern:
My name is Elgin Lewis and I am a graduate student at Central Michigan University. For my final project, I am gathering information on the financial feasibility of breach insurance in the retail industry. You were selected to participate in this study because your organization has subject matter expertise on this subject and I would like to interview a breach/cyber liability insurance specialist.
I would like to invite you to participate in a telephone, Skype, or email interview designed to gather information about what factors retail organizations should consider when deciding if breach or cyber liability insurance is a right choice for their company. I anticipate the interview to take approximately 20 minutes. There is no compensation for responding nor is there any known risk. In order to ensure that all information will remain confidential, I will not record your name or identify you by name in the final research project. I will reference you using the term, “subject matter expert”. Copies of the project will be provided to my Central Michigan University faculty monitor. Participation is strictly voluntary and you may refuse to participate at any time.
If you are willing to participate in the interview please respond to this email with an affirmative and I will contact you to schedule a convenient time to conduct the interview. Your affirmative response will constitute consent to participate in the interview. If you would like a summary copy of this study, please let me know at the end of the interview and I will add your name to a list that I will maintain separately from my interview notes. If you have questions later, please contact me via email or by telephone. My contact information is listed below. My faculty monitor is Dr. Patricia Kelley and she can be reached at 941-575-1161 before 5PM.
If you are not satisfied with the manner in which this study is being conducted, you may report (anonymously if you choose) any complaints to the MSA Program by calling 989-774-6525 or addressing a letter to the MSA Program, Rowe 222, Central Michigan University, Mt. Pleasant, MI 48859.
Sincerely,
[Elgin T. Lewis, 334-208-9023 lewis1et@cmich.edu]
Thank you for your note, Elgin. Someone will be reaching out to you shortly to coordinate an interview with one of our cyber experts.