Consumer information such as credit card numbers, medical records and other Personal Identifiable Information (PII) are more susceptible to malicious and accidental breaches, and, unfortunately, businesses will incur great costs as future data breaches are estimated to be far more expensive, according to Ponemon's report. Because of this, investment in cyber liability insurance has surged in recent years.
While 31 percent of companies in
1. Malicious attacks cause less than half of data loss
There is a major misconception that a company's IT department is able to prevent all loss of sensitive data. 59 percent of data breaches are caused by human error or by a system glitch, according to
2. Every company is obligated to protect personal information
Another common misconception is that a company is small enough or does not collect enough data to warrant an attack. Many states require businesses to encrypt all sensitive data without exception. Regardless of the company's size, it is obligated to prevent data breaches and will face hefty penalties if it fails to do so.
3. The healthcare industry faces even more severe penalties for data loss
The US Health Information Portability Accountability Act (HIPAA) instituted nation standards for electronic healthcare transactions. Inability to comply with HIPAA will result in harsh punitive measures. This, in conjunction with the Health Information for Economic and Clinical Health Act (HITECH), which expands the privacy requirements instituted by HIPAA, means those in the healthcare industry could face catastrophic costs if they go unprotected.
4. Cyber security insurance policy satisfaction is high
44 percent of the respondents to
About Cyber Protector PlanSM (CPP)
The Cyber Protector Plan is a division of
Insurance Coverage Territory for Cyber Protector PlanSM
Read the full story at http://www.prweb.com/releases/2014/07/prweb11996146.htm
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