“There are only two types of companies: Those that have been hacked and those that will be.”

In 2012, the average cost of a data breach was $8.9 million. 50% of attacks in 2012 were aimed at businesses with fewer than 2,500 employees and 31% were targeted at businesses with less than 250 employees. A data breach can result from a simple mistake— 33% of organizations said that employee negligence was the cause of breaches

Cyber Attack Facts

  • 97% of cyber attack incidents were avoidable with simple precautions
  • 92% of data breaches were discovered by a third party and not by the company itself and most stemmed from external agents (Partners, suppliers, customers and criminals)
  • 96% of attacks were not highly difficult to undertake
  • 81% of cyber attacks utilized some form of hacking

What are the Exposures?

Legal exposures:

  • Defense costs
  • Third-party damages
  • Regulatory fines and penalties

Breach exposures:

  • Theft of confidential information – credit card, financial information, medical records
  • Computer Viruses – can destroy data, damage hardware cripple systems
  • Notification
  • Cost associated with replication of data
  • Business interruption and extra expenses
  • Cyber extortion (e.g. negotiator/ransom)

Algoma Financial Group has Coverage Available to Manage Cyber Risks

  • Cyber Liability including; Defense costs, punitive or exemplary damages
  • Privacy Notification Expenses
  • Crisis Management Expenses
  • Business Interruption / Extra Expenses
  • E-Theft / Communication Losses
  • E-Threat / Vandalism Expenses
Author:
Algoma Insurance Brokers