Basic Overview of Potential Costs for Your Business in the Event of a Breach

Whether it's identify theft, data breach or cyber-crime, they are all basically the same thing. Regardless, the fact of the matter is that you need to be aware of the growing crime and how you're at risk.

Regardless of the industry that you're in, every business has confidential information that a thief wants. They'll take that sensitive data and sell it for money in their pockets. Unfortunately, it will be your bank account that continues to dwindle even after the breach occurs. Here are potential costs that you can expect to deal with:

  • Notifying your customers of the data breach will cost roughly $1, maybe $2, per person.

  • Obtaining help with data recovery and research could cost you $250 per hour.

  • Reissuing credit cards to your customers may cost you $25 per card.

  • Obtaining subscriptions for consumer credit monitoring will cost upwards of $20 per person.

  • Working with legal counsel could cost $600 or more per hour.

  • Offering a customer support hotline would likely cost $5 or more per phone call.

In addition to the aforementioned costs, you have to also think about the costs that are almost impossible to estimate since they vary depending on the exact circumstances and severity of the breach. These costs could include:

  • Expenses for rewards of the person who committed the breach.

  • Various public relations activities to try and salvage the name of the company.

  • Costs to upgrade technology in the office and training of staff.

  • Replacing stolen securities, identifies or funds.

  • Extortion demands.

Cyber-crime is a serious threat to every single business in the country, including your business here in Canby, Oregon 97013. Contact one of our independent commercial insurance agents to learn how you can protect your business from data breaches. Don't forget to ask for a quote on commercial insurance that will protect you in the event that a breach does occur.