This post was originally run on July 18, 2013.
When sensitive data in your company’s care is compromised by a data breach, there are major costs that flow to your bottom line. To find out the approximate cost to your business if you incur a breach, simply answer the questions in this data breach calculator. You can’t afford not to take the time to do this and to really see the major financial impact a data breach can have on your company.
The greatest direct cost comes from your duty to notify those whose personal information has been compromised. State regulations mandate this notification process. Costs can amount to $200K and can also include creating contact data bases, retaining outside experts and postal expenditures.
In general, small businesses have less internal resources and expertise to handle a breach response. As a result, they are more likely to have to pay outside experts such as attorneys, consultants, crisis management, and public relations firms.
You also need to consider the indirect and arguably the most damaging aspects of a data breach – customer erosion. Customer turnover and the expense to retain existing clients will be extensive and require the need for increased marketing efforts to avoid reputation loss and diminished good will.
New Agency Partners has been proactive in recognizing the magnitude of financial damage that can be inflicted on a business as a result of a data breach. Allow us to be your data breach solutions advisor and contact us today. Or, complete our Premium Indication Worksheet for an idea of what this valuable protection might cost (hint: it’s not as much as you think!).