Cover your costs: privacy breach notification and cyber liability
According to the Ponemon Institute’s 2015 Cost of Data Breach Study, the average per capita cost of data breach in the United States is $217, while the average total organisational cost is $6.5 million. Comparatively, in Australia, the draft Regulation Impact Statement cited the average cost of notification at $70,000, while the total cost of a data breach is typically upwards of $2.82 million. While this is significantly lower than the cost of data breach in the United States, the economic impact of data breach for Australian businesses carries substantial weight.
In light of the Federal Government’s Notifiable Data Breaches Bill passed through the Senate this week introducing a mandatory data breach notification scheme, we consider how these laws will affect your business and the role of insurance in reducing the cost of a data breach.
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