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Almost One-Third of U.S. Businesses Had a Data Breach

Eight in ten spent at least $5,000 to respond, many $50,000 or more

Almost one-third of businesses (29 percent) experienced a data breach in the previous year, according to HSB’s latest cyber survey of business executives, and eight in ten spent at least $5,000 to respond.

Vendors and negligent employees

The HSB survey also found that almost half of the breaches (47 percent) were caused by a vendor or contractor working for a business, followed by employee negligence (21 percent) and lost or stolen mobile devices or storage media (20 percent).

Risky business

“The results highlight how closely our economy and society are interconnected digitally,” said Timothy Zeilman, HSB counsel and vice president. “Almost all of our personal and business data can be accessible on the Internet through our business connections, websites and social media. And that exposes our private information to attacks by hackers and cyber thieves.”

Data breaches can be expensive

The financial impact of data breaches are considerable: 27 percent of the businesses surveyed around the country by Zogby Analytics for HSB spent between $5,000 and $50,000 to respond and 30 percent spent between $50,000 and $100,000.

They’re distracting and can harm your reputation

A data breach can also be a major distraction, consume resources, and harm a company’s reputation with customers, business clients and the public. Sixty-five percent of the businesses that reported a data breach said the incident had a negative impact on their organization’s image.

More businesses are purchasing cyber insurance

The risk of a data breach or cyber attack has more businesses looking for financial protection. HSB’s survey found 61 percent of businesses purchased or increased their cyber insurance in the past year, and 56 percent of them purchased cyber insurance for the first time.

HSB Cyber Suite provides a range of coverage

What about your clients? Do they have adequate protection against cyber exposures?

HSB’s Cyber Suite is coverage designed to help businesses respond to a full range of cyber exposures, including data breach, computer attacks, cyber extortion, cyber-related litigation, and more. Visit our website for more information on our cyber insurance coverage and services.

Almost One-Third of U.S. Businesses Had a Data Breach