"We've been hacked."

More than one company — in fact, more than one government — awoke to the reality of this unsettling statement in 2015. All indications are that data breaches and other cyber-related exposures are on the rise, and the situation may become worse before it gets better.

According to the Identity Theft Resource Center (ITRC), from January through October 2015, there have been more than 620 data breaches in the United States last year, resulting in 176 million records being exposed. Once a breach has been discovered, the tangible and intangible costs associated can be significant and affect a business' long-term ability to survive. According to the 2015 Net-Diligence Cyber Claims Study, the average cyberrelated insurance claim amounted to $673,767 ($4.8 million for a large company and $1.3 million per claim in the healthcare sector). The study also reported the average cost per breached record amounted to about $964.