Verizon just released it’s annual report on data breaches. Their report covers 1,367 data breaches and over 63,000 security incidents from 2013. Among it’s finding as that 34% of losses come from “Miscellaneous Errors” and 24% come from “Insider Misuse”. That means a third of the incidents are caused by general, unintentional negligence and another quarter are the result of someone on the network doing something they shouldn’t be.
These finds track insurance company underwriting guidelines. When cyber liability was first offered those seeking the insurance completed dozens of pages of information that was often followed by an hour long risk management interview with the IT department. For smaller businesses those applications have shortened considerably, with many small businesses able to buy cyber by certifying they have never had a breach. This shows that insurance company data also supports that most claims are caused by human error, not by a lack of controls or procedures.
The findings reinforce that even the most careful companies can face a network security incident, by purchasing insurance startups and established enterprises are protected against the costs of quickly responding to ever increasing regulations regarding the loss of private data. Contact an expert broker today to discuss the costs and benefits of insuring your enterprise.