Fergie's Tech Blog

Canada: Insurers Look to Cover Hacking Damage

Janet McFarland writes on The Globe and Mail:

Insurers are betting that an explosion of sophisticated computer hacking will create a new market in Canada for insurance to cover the growing costs of recovering from privacy breaches.

Toronto-based Executive Risk Insurance Services says it is launching a new category of insurance for corporate clients, similar to products offered by U.S. giants like American International Group Inc. and Chubb Corp., to manage the fallout when sensitive data is lost or stolen.

The policies pledge to cover not only the straightforward costs of repairing computer damage, but also the far greater costs of notifying and reimbursing customers or compensating credit card companies for losses that occur from the fraudulent use of data.

posted by Fergie @ 3/14/2008 12:31:00 PM