Tech//404^® Data Loss Cost Calculator

Data loss resulting from network security breaches and identity theft has become a regular occurrence. While the number of affected records can vary widely in any given data loss scenario, a recent study by the Ponemon Institute found that the average number was roughly 99,000. For recent examples and media reports, visit the data loss archive.

Allied World created the Tech//404^® data loss cost calculator as a tool to demonstrate the scope of negative financial impact an organization may face as a result of a data breach or identity theft data loss scenario. The calculator will automatically generate an average cost, and a plus/minus 20% range, for expenses associated with internal investigation, notification/crisis management and regulatory/compliance if the incident were to give rise to a class action claim.

To view instructions on how to use the calculator, click here. Clicking this link will open a new window in your web browser. Please be sure to adjust your pop-up blocker settings accordingly.

Depending on the circumstances surrounding a data breach, the resulting civil damages exposure could be substantial. However, the Tech//404 data loss calculator cannot currently estimate costs associated with damage awards in civil lawsuits, due to the lack of sufficient credible data. A number of class action lawsuits have been filed, but Tech//404 experts are not aware of a class which has yet been certified, or of a settlement or judgment which has yet been announced, in a data breach / identity theft context. To the latter point, below are some examples of pending lawsuits, indicating the total damages sought.

Action Against:	Potential Class Size:	Seeking Damages Of*:
St. Francis Hospital	260,000	$5,000/pp
Verizon	2,000,000	$21,000/pp
AOL	500,000	$1,000/pp
Verteran's Administration	260,000	$5,000/pp

*Class actions rarely settle for the full amount of the claim sought.

---

Important information: The numbers presented in the Tech//404 data loss cost calculator are estimates and provided for illustration purposes only. Actual expenses and financial loss due to identity theft or data loss may vary based on a range of variables not contemplated in the calculator. Some expense items listed in the calculator may not be covered by insurance. Numerical results presented in the data loss cost calculator are based on a proprietary formula created by Allied World This formula takes into account information available in the public domain; information obtained through the Privacy Rights Clearinghouse; per capita loss expenses published by Ponemon Institute research studies; case law; and other published reports.