There has been a dramatic rise in e-business in the past 5 years. The estimated number of persons using the Internet in 2010 is 1.7 billion (230 million users in the USA, 235 million in China). And the number is steadily growing. Charlie Sheen got more that a million followers on Twitter in 25 hours. Imagine that!
Online sales are estimated to be in the $150 billion range with the holiday sales to be 40% - 50% of that. The average projected transaction revenue per online customer ranges from $475 in 2002 to $1350 in 2010. The leading online purchases by selected retail categories ranges from travel to computer parts to flowers and jewelry. Our privacy has become more difficult to maintain. Data breach has become more difficult to protect and is the major driver of the purchase of "E-Business" Insurance. Oklahoma has passed a state law to protect state residents regarding data breach notification. Federal law mandates notice to all persons whose information has been breached. The calculated cost is considered to be about $8 per notice. The numbers are growing.
- Of 83 corporate IT managers, 28 acknowledged having to cope with a data breach
- The costs of a data breach vary widely ranging $90 to $305 per customer record, depending on whether the breach is "low-profile" or "high-profile" and the company is in a non-regulated or highly regulated area, such as banking.
- In counting up costs, Forrester estimated the cost at $50 for the discovery, notification and response that brings in unexpected expenses associated with legal counsel, call centers and mail notification. It also noted a lost employee productivity that would range from $20 to $30 per customer record.
Workplace Facts and Statistics
Businesses are finding it more and more imperative to find insurance coverage for Data Breach issues. There are many companies that are now offering various levels of Data Breach coverage for small or large business. Many personal lines companies are offering endorsements for Identity Theft etc. As we continue our internet quest with social media it is expected that this will be a growing issue.
CNA Introduces NetProtect Essential for your small business, and Travelers is a company that has Identity Theft insurance for the individual.
If you feel this is a real concern and would like to learn more about what these companies offer, give us a call and and let one of our agents find you the coverage needed for your home or business.