As mentioned earlier, the key factor in assessing cyber risk is to understand the number of customer records managed by the business. Whether on paper files, on a networked server, a laptop, a mobile phone, tablet or a USB storage device, thousands of files could be compromised if not handled properly.
Costs of data breach response are greatly impacted by the number of confidential records exposed or compromised.
Our results show that the cost to respond to a data breach is usually between $10 per record for breach response services that include some legal expenses, IT Forensics, customer notification letters, call center support, and credit monitoring services. Keep in mind this number is an average. Costs can exceed $30 a record in some cases.
So to illustrate… A business with 3200 customer records, and an average cost of $20 per record for breach response, a business would be looking at a potential $64,000 expense.
Does your insured have sufficient coverage?