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Insurance Coverage Disputes over Data Breaches

By Ellen Farrell and Kathryn Linsky

Each day, businesses become progressively more dependent on computers and the Internet to gather, store and protect information. But, as sophisticated as this technology may be, it has also proven to be susceptible to breaches, which have time and again resulted in the unauthorized access of confidential information.

These breaches can be incredibly costly to companies. According to a recent study by Symantec, the average total organizational cost of a data breach to a U.S. company has reached a staggering $5,403,644. See, http://bit.ly/UAbyLI. And, as in the case of the recent Target breach, many millions of individuals have potentially had their personal information compromised, so the cost of a data breach may be many times the Symantec average.

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