|By Brandon Klein, Vindicator, Youngstown, Ohio|
|McClatchy-Tribune Information Services|
"The risk is growing," said
The insurance agency in
Marconi said she believes that businesses are not aware of the risks.
The latest data breach in the area involved two
However, cyber-liability insurance still is in its infancy since its rise in the insurance industry for the past four years, said
According to a study from the
In 2013 alone, 100 million records were exposed due to data breaches.
"It's prominent, and it's hardly preventable," Komar said.
Data breaches have a huge economic impact when they occur, she said. The national average cost is
Last December, Target experienced a data breach that potentially could affect up to 110 million accounts. The retail store has incurred at least
As a result, more companies are seeking coverage beyond
But as data breaches become more frequent, demand for cyber-insurance is going up while supply is limited, she added.
"The capacity is starting to shrink," Komar said.
While such coverage would be available, premiums would increase 10 to 15 percent for larger companies, she said.
Eventually, retailers and suppliers may require one another to carry cyber- liability insurances within the next few years, Komar said. "It's hard to put a value on [data breaches]," Komar said.
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