As previously discussed, the cost per lost record for a data breach is $214 (according to a 2010 Ponenom Institute study). Now, Experian Data Breach Resolution and Ponenom Institute have released results of their study on the Aftermath of a Data Breach. This study polled more than 500 IT professionals about one key data breach at their companies. Highlights of some of the results:
-Half of the breaches were caused, where cause could be identified, by insiders (primarily negligent but 16 percent were reported as being caused by malicious insiders).
-60 percent of respondents indicated data lost or stolen was not encrypted.
-Over 60 percent of respondents said their companies did not offer credit monitoring services following the data breach.
-Respondents felt the best course of action to minimize the negative impact of the breach included hiring legal counsel, evaluating the harm to victims and hiring forensic experts.
Based on these highlights, insurance options that provide for forensic expert expenses and do not exclude breaches when arising from unencrypted data could be some of the more attractive coverage options for buyers. Read more coverage considerations for privacy/security exposures.