Back to the Library
It seemed like not a month went by in 2014 without the announcement of a large or high-profile breach of consumer data. There were enough data breaches that 60 Minutes termed 2014 “The Year of the Data Breach.” As compared to 2013, the number of incidents detected by respondents increased by 48 percent in 2014 data, climbing to 42.8 million. That number comes out to 117,339 incoming attacks each day. Moreover, the annual average financial loss for cybersecurity incidents for 2014 was $2.7 million, a 34 percent increase over the previous year. Although 2014 has ended, every indication suggests businesses will continue to face challenges in 2015 to their data security and that, with the continued proliferation of consumer data, responding effectively to those challenges will become increasingly critical and expensive. In responding to these incidents and minimizing potential hits to the bottom line, businesses should look to their insurance portfolios in addition to their infrastructure and data security measures. Specifically, businesses should reassess their current coverages, including their D&O Policies, in light of the various risks posed by potentially significant data breaches.