by Guest Author on Feb 03, 2014
December's massive breach of Target's electronic data systems exposed the credit card information of roughly 70 million customers.
Fortunately for Target, according to Business Insurance (January 19, 2014), the company had $100 million of cyber liability coverage in place at the time the breach was discovered.
However, the company's uninsured/uninsurable losses are likely to far exceed the policy's limits. Nevertheless, merely having cyber coverage in place assures that Target's insurance company "partner" will provide the kind of state-of-the-art, post loss expertise that will, to the extent that is humanly possible, minimize the organization's eventual losses.
In my view, cyber liability insurance is much more than merely having a source of money available to pay for items like credit monitoring services, computer forensics, data recovery, business interruption losses, or regulatory fines and penalties.
Cyber insurance is really about (1) better understanding your company's vulnerability to a breach, by virtue of the detailed fact-finding and internal investigation required during the application process, and (2) receiving an insurer's expert loss control/minimization assistance after the breach.
In light of the Target situation, is there anyone who still doesn't feel the need for a business to at least apply for cyber coverage? Or, do you continue to believe there is no need to even consider this type of insurance?
Give Andre-Romberg Insurance a call, if you are interested in discussing Cyber Liability!