Data Breach: Are You Protected?

September 23, 2011||inBusiness Insurance|business insurance, cyber liability insurance, data breach, identity theft


Michael Murphy,  President


According to the Massachusetts Attorney General, over two million Massachusetts residents have been impacted by data breaches since January 2010. 25% of these incidents involved deliberate hacking of computer systems and 15% involved theft of customer credit card numbers from retailers. In addition, data was lost through theft or accidental loss of laptops, paper documents, or other unauthorized access.

Data Breach: Are You Protected?
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The Sony data breach earlier this year compromised the personal data of more than 100 million customers, exposing them to the risk of identity theft. With information including name, birth date, and other personal information, it’s difficult to know how long this threat could last. Some project that Sony could lose $50+ million between cost of repairs, additional marketing costs, and potential lost business.

Sony is a corporate giant, but it could happen to any business…even yours. A recent Wall Street Journal article reported that of 761 cyber attacks reported in 2010, 482 were at companies with less than 100 employees. According to a Ponemon Institute Cost of Cyber Crime Study, a data breach costs a business an average of $204 per customer record. Also, according to Kroll, a London-based consultancy firm, 15% of data breaches are inside jobs.

Every business that maintains customer or employee personal and financial account information needs to be prepared and protected. Has your company taken steps to comply with the Massachusetts Standards for the Protection of Personal Information law (MA 201 CMR 17) regulating personal private information? Also, if your company is involved in online web or social media services, IT consulting, systems or software development and maintenance, or other data management, are you adequately protected should one of your customers experience a breach?

Given the potential threats, proper operational planning is essential for prevention. However, despite efforts to protect data and systems, it’s still possible that a data breach could occur. To help manage your financial risk, consider purchasing a Cyber Liability policy.

It provides coverage for a variety of data security risks including:

  • Accidental release of confidential customer information
  • Spreading a virus into a customer’s computer system
  • Theft of customer’s credit card or banking account numbers

To learn more about cyber liability insurance, Contact Us online or call us to speak with a professional. Once we understand your business needs, we’ll gladly provide you with a custom quote.

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