Insurance for Cyber Attacks: Despite the Hype, You May Already be Covered

Cyber-Attack Clouds Over Target

Cybersecurity and data loss risks are top concerns for the C-suite these days, and rightfully so.  Companies of all types and sizes are exposed to a growing risk of attack.  The now infamous Target cyber-attack demonstrates that no organization is immune from attack.

Because the resulting costs associated with a cyber-attack are potentially enormous, insurance should be a top consideration.  The Ponemon Institute’s “2014 Cost of Data Breach Study: Global Analysis,” recently reported that “the average total cost of a data breach for the companies participating in [its] research increased 15 percent to $3.5 million.”  Id., at 1.  Those costs arise on multiple fronts – from repairing damaged or compromised software and hardware systems, rebuilding relationships, notifying and reimbursing customers, and responding to government inquiries, to defending against third party lawsuits.  A priority for any policyholder is to secure as much insurance coverage as possible to cover these costs. (more…)