Cyber liability plaintiffs are experiencing more success in the courts, significantly increasing potential costs for companies that have experienced data breaches.
Increasing legislation and regulation related to data breaches at both the state and federal levels is contributing to plaintiffs’ success.
The average cost of a data breach was $2.4 million in a recent survey of approximately 80 data breach claims. Hackers are the most frequent cause of data breach losses, responsible in 32% of the claims studied, Mr. Greisiger said, followed by rogue employees or contractors in 19% of the claims.
Health care was the sector most often at risk for data breach in the survey, responsible for 24% of the claims, followed by financial services with 22%.
The average cost of legal defense associated with data breaches was $500,000, with the average cost of settlement at $1 million.
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