Skip to main content

Simple Steps to Reduce Data Security Incidents

data security

Simple Steps to Reduce Incidents

Data security has grown from a relatively minor issue facing most business owners to one of the most costly, time-consuming and prevalent forms of risk. Not only is data security instrumental in retaining the trust and confidence of clients, but in many instances, it is also a legal mandate.

Research conducted by one data protection company indicated the average total cost per incident of data security was $6.65 million in 2008 and was likely to climb even higher. That included major nation-wide corporations with millions of customer records at stake.

To put it into a better perspective, the average incident cost $202 per compromised customer record, including both prior and former client lists. It’s a cost that can add up even for relatively minor data security leaks.

Most small-business owners drastically underestimate their risk for a data security breach. According to research conducted by Kroll Inc., the following were the most common causes of data security exposure:

  • 8% – disposal of files on computers
  • 8% – improper email usage
  • 8% – hacking
  • 4% – lost, missing or stolen laptops
  • 3% – web surfing/posting/other
  • $5.9 million – Average organizational cost of a data breach

 

These risk can be dramatically reduced by implementing a prevention plan and obtaining insurance.

Don’t wait for a breach to take place. Prevent it from happening by implementing a policy and employee training for critical areas.

Ask your agent about security and privacy insurance. Check your policy because some commercial general liability and/or general liability policies exclude electronic data, so it’s important to obtain independent quotes to ensure that your small business is covered. Still unsure about your policy? Give East Harlem Insurance Brokerage a call today.