Data Breach Claims

In today's world, no one is immune from the risk of a data breach. Hardly a week goes by when the news does not report on a company or government entity suffering a catastrophic loss of private and privileged confidential personal data. These losses are not just happening to the unsophisticated, but to major companies and organizations. In June of last year, the Federal Government's Office of Personnel Management suffered a data breach that exposed the personal data of at least 4 million current and former federal employees.

The loss of information from Sony Pictures, Target and many others highlights the fact that no organization is immune. A study by the Ponemon Institute in Michigan found that the average cost of a corporate data breach last year was $3.5 million. The U.S. Department of Defense noted that “[e]very year, an amount of intellectual property larger than that contained in the Library of Congress is stolen from networks maintained by U.S. businesses, universities, and government departments and agencies.” For anyone doing business today, an understanding of the basis for potential liability ' both statutory and civil ' for such losses of information is essential, not only to limit liability or to keep your organization out of the news, but to protect and professionally service your clients and business partners.