$0 cyber liability coverage for 75% of American businesses
$0 cyber liability coverage for 75% of American businesses
According to a recent Towers Watson & Co. study, 75% of American businesses do not have cyber liability coverage. And yet, cyber security concerns affect companies of all sizes:
- 563,000,000 records have been reported leaked since Privacy Rights Clearinghouse began tracking US data breaches in 2005.
- The Privacy Rights Clearinghouse database contains information on breaches affecting more than 25 million records caused by “unintended disclosure”. In many cases these breaches resulted from sensitive information being posted on a website or e-mailed to an unintended party.
- 46 US states have data breach notification legislation in effect.
The costs attributable to data breaches and data loss can jeopardize a company’s financial well-being. The average annual cost for a data breach to small to mid-sized businesses is $200,000. Just one laptop packed with sensitive information costs an average $50,000.
However a company’s data is compromised, it is liable for damages arising from lost customer and employee data. A rule of thumb cost per potential violation for notification and credit monitoring services for affected customers (where required) is $214 per record and $7.2MM per breach event (based on a 2011 Ponemon report). The greatest benefit of having coverage is instant access to a prepackaged group of experts in areas such as forensics, public relations and legal staff to help cut through the notification and crisis management issues sure to develop following a loss. To do it yourself is both inefficient and counter productive in addition to costly.
Given the high risk of a data breach and its potentially ruinous costs, insurance protection against a cyber security threat has become “must have” coverage. Please contact your KMRD Partners relationship manager to review your organization’s cyber liability coverage before one minute from normal strikes.
KMRD reduces the overall cost of risk for clients by producing a greater value for each insurance dollar spent, while utilizing an enterprise risk management approach to engineer the optimal solution. The firm’s diagnostic process is supported by its unique collaborative technology, KMRD XCHANGE ®
We are dedicated to anticipating risk and helping firms recover from unplanned events that wait on the other side of one minute from normal.
To identify and correct coverage and service gaps in your insurance contact us at contactus@kmrdpartners.com before one minute from normal strikes your company.
