Nearly all the states have breach notification laws, requiring a business that’s been hacked to notify persons whose sensitive information may have been compromised. The costs of notification can be extremely high. Estimates vary widely, but range from about $50-200 per record.
Expenses incurred by a business suffering a breach include mailing letters, setting up a call center to answer questions, and offering identity monitoring. For an average breach with several thousand records, the total costs can easily run into the six figures.
Carriers are paying breach notification claims, and the number of claims will likely increase in the foreseeable future. In this brief video, we highlight some of the discussions on notification costs from our 2012 Cyber Risk Management Boot Camp. You’ll hear insights from leading carriers and attorneys, as well as INSUREtrust president Steve Haase.
If you have questions about notification costs, please email or call us. And plan on attending the 2013 Cyber Risk Management Boot Camp, this September in metro Atlanta!