Coverage gaps can often prove fatal to organizations of many shapes and sizes. While this is known to many business owners in an abstract sense, we’d like to make it more concrete. How much can it really cost to have gaps in your coverages? Which coverages are most often overlooked? Which are most costly?
Two categories comprise a significant portion of the answer: Cyber Liability and Employment Practices Liability. Knowing the facts can help you to evaluate the extent to which coverage is necessary for your organization.
- 85% of data breaches occur in companies with 100 or fewer employees
- 60% small businesses close their doors after an attack or breach
- 36% of external costs related to a breach are attributed to fines and litigation
- Costs for a legal defense can run between $ 283,000-$700,000
- A legal settlement can cost $150,000-$550,000
- Crises services, such as forensics, legal guidance, public relations and notification, can cost between $110,000-$360,000
Employment Practices Liability
- It costs $100,000 to defend an employment practices lawsuit
- 75% of all corporate litigation are related to employment practices
- 40% of employment practices litigation involve small businesses
- In 67% of employment practices lawsuit, the plaintiff wins
- Average compensatory award is $218,000
To learn more about cyber liability, employment practices liability, and fatal coverage gaps, contact us.