Hacking Blitz Drives Cyberinsurance Demand
Ben Berkowitz writes for Reuters:
The recent string of sensational hacker attacks is driving companies to seek "cyberinsurance" worth hundreds of millions of dollars, even though many policies can still leave them exposed to claims.
Companies are having to enhance not just their information technology practices but also their human resources and employee training functions just to get adequate coverage against intrusion -- and in some cases, they are also accepting deductibles in the tens of millions of dollars.
Insurers and insurance brokers say demand is soaring, as companies try to protect themselves against civil suits and the potential for fines by governments and regulators, but also as they seek help paying for mundane costs like "sorry letters" to customers.
"When you have a catastrophic type of data breach then yes ... the phones ring off the hook," said Kevin Kalinich, co-national managing director of the professional risk group at insurance broker Aon Corp.