The Hartford Newsroom

Cyber Insecurity: 4 in 10 Midsize Businesses Have Experienced A Data Breach

  • Most view data breach among top risks
  • IT security and data protection ‘very important’ in supplier selection
June 25, 2015
"All types of businesses have networks and networks can be vulnerable to a breach"

HARTFORD, Conn.--(BUSINESS WIRE)--Most midsize business leaders view a data breach among their top risks and a majority consider IT security ‘very important’ when selecting a supplier, according to The Hartford’s survey of midsize business owners and C-level executives. They have good reason to be concerned: 43 percent had experienced a data breach in the prior three years, and 13 percent have had a supplier’s data breach impact their business information.

The Hartford survey found most midsize business leaders (82 percent) consider a data breach at least a minor risk to their business. Nearly one-third (32 percent) view it as a major risk.

“All types of businesses have networks and networks can be vulnerable to a breach,” said Joe Coray, vice president of The Hartford’s Technology & Life Science Practice. “As we have seen in recent years, a breach involving a supplier or vendor can impact a business as much as a breach of its own IT systems. Whether businesses are hosting their data internally or entrusting it to external business partners, it is important that they validate how their information is being secured.”

Recognizing the data risks involving suppliers, more than half of the midsize business leaders (53 percent) surveyed consider IT security and data protection practices very important when selecting a supplier. By comparison, 36 percent consider a supplier’s contingency planning and 28 percent view a supplier’s location relative to their business as very important.

“Given what is at stake in terms of a company’s operations and reputation, evaluating a prospective supplier or vendor‘s IT security and data protection protocols against current best practices should be a critical part of a company’s due diligence process,” said Coray, who discusses data breaches and other technology risks for midsize businesses at www.thehartford.com/midsizemonitor.

For information about protecting businesses from data-related risks, visit http://www.thehartford.com/data-breach-insurance/

Survey Methodology

The Hartford’s 2014 Midsize Business Monitor was fielded from September 16-23, 2014. More than 500 owners and C-level executives of midsize businesses headquartered in the U.S. with annual sales or revenues of $10 million to $1 billion participated in the online survey, which had a margin of error of +/- 4.3 percent at the 95 percent confidence level.

More information about this survey, including an executive summary and infographics, is available at www.thehartford.com/midsizemonitor.

About The Hartford

With more than 200 years of expertise, The Hartford (NYSE: HIG) is a leader in property and casualty insurance, group benefits and mutual funds. The company is widely recognized for its service excellence, sustainability practices, trust and integrity. More information on the company and its financial performance is available at www.thehartford.com. Join us on Facebook at www.facebook.com/TheHartford. Follow us on Twitter at www.twitter.com/TheHartford.

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Contact:

The Hartford
Pamela Rekow, 860-547-8990
pamela.rekow@thehartford.com

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(Graphic: Business Wire)
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