NetDiligence Reports That Data Breaches Are Affecting Smaller Companies

NetDiligence has released its Cyber Liability & Data Breach Insurance Claims study which uses actual cyber liability insurance reported claims to illuminate the real costs of incidents from an insurer’s perspective. NetDiligence samples 145 cyber liability insurance claims, 140 of which involved the exposure of sensitive data. The study examined the type of data exposed, the cause of loss, the business sector in which the incident occurred and the size of the affected organization. The study is available for download on request. Among the findings: Personally identifiable information was the most frequently exposed data (28.7% of breaches), followed by personal health information (27.2% of breaches). Lost or stolen laptop and similar devices were the most frequent cause of loss (20.7%), followed by theft from hackers (18.6%). The median number of records lost was a paltry 1,000. The median per‐record cost was $107.14. The average per‐record cost was $6,790. The median cost for Crisis Services (forensics, notification, credit monitoring and legal guidance) was $209,625. The median cost for legal defense was $7,500. Most telling, the median number of records exposed in this year’s study – 1,000 – is much smaller than prior years. That continues a trend NetDligence noted from last year’s study, that more claims are being submitted for breaches with a relatively small number of records exposed. This confirms my understanding that as the large companies are becoming...

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