“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
• The cost associated with replication of data
• Business interruption and extra expenses
• Cyber extortion (e.g. negotiator/ransom)

Northern Insurance Brokers has Coverage Available to Manage Cyber Risks

• Cyber Liability includes; Defense costs, punitive or exemplary damages
• Privacy Notification Expenses
• Crisis Management Expenses
• Business Interruption / Extra Expenses
• E-Theft / Communication Losses
• E-Threat / Vandalism Expenses