Data Breach Protection Plan

February 21st, 2014 by admin

If you think the rules regarding data breach reporting apply only to major breaches involving 500 or more persons you are wrong!

-71% of data breaches happen to small businesses

-Small businesses experience 95% of the credit card breaches reported

-52% of small business owners say they have no data security policy

-Reported data breaches were up 38% in 2011

And when sensitive data is exposed- your reputation is on the line!

 

We can help absorb some of the costs associated with a breach:

  1. The Cost Of Notification-

 (i) E-mail and First Class Mail; (ii) Substitute Notices: Media Notice; (iii) Substituted Notices: Toll-Free Number; (iv) Imputed cost to affected individuals who call the toll-free line; (v) Notice to Media of Breach: Over 500; (vi) Report to HHS: 500 or More; and (vii) Investigation Costs: Under 500; (viii) Investigation Costs: 500 or More;.

 

Consequently, compliance with the notification requirements of the Breach Notification Rule can be expensive, particularly if the number of individuals whose PHI has been compromised is large.

 

  1. Civil Monetary Penalties

-The entity did not know and could not have known of the HIPAA violation: Not less than $100.00 nor more than $50,000.00 per violation.

-There was reasonable cause for the HIPAA violation: Not less than $1,000 nor more than $50,000 for each violation.

-The HIPAA violation resulted from willful neglect on the part of the culpable entity but was corrected within 30 days of the date the entity became or should have become aware of the violation: Not less than $10,000 nor more than $50,000 per violation.

-The HIPAA violation resulted from willful neglect and violation was not corrected: Not less than $50,000 per violation.

3.    Litigation

4.   Additional Costs

-reputational damage and unfavorable media attention

-credit monitoring services tto affected individuals

– patient and public trust corrosion

Is your company vulnerable to a data breach? Assess your risk level now with the Data Risk Calculator

How much could a data breach impacting private customer or employee information cost your company? Get an estimate with the Data Breach Expense Calculator

Give Geri Warick a call (x18) or e-mail her at gwarick@icnj.com for more information.