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Costs are up for lost records

The Ponemon Institute recently released its 2009 data breach figures. The average cost per customer record lost is up to $204, $2 higher than 2008, and the average total cost per company is now $6.75 million.  The sample size is relatively small – 45 companies.

It should be noted that many costs associated with a breach (i.e. notification costs, credit monitoring, investigative costs, etc.) are subject to sublimits under most, if not all, Privacy Liability policies.  The sublimit is typically equal to 10% to 20% of the limit of liability ($100,000 on a $1MM policy).  This is not much coverage and will most certainly be a limits loss for insurer if there is a breach.  Always try to increase this sublimit limit when negotiating coverage.

For more information, see the full study or check out our most recent High Tech Update focused on Data Security and Privacy.

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