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High profile hack attacks compel cyber insurance premiums to shoot up
Rising cyber insurance premiums and limited damage coverage effectively mean that companies could be liable to pay more if they`re hit by a cyber attack.
Zee Media Bureau
A torrent of cyber attacks on US companies over the past two years has led cyber insurers to boost premiums for high-risk companies and in some cases limit damage cover to a maximum of $100 million, according to a Reuters report on Monday.
Rising cyber insurance premiums and limited damage coverage effectively mean that companies could be liable to pay more if they're hit by a cyber attack.
The price of cyber coverage helps cover costs like forensic investigations, credit monitoring, legal fees and settlements and is dependent upon the strength of a company's security.
Reuters further quoted Tom Reagan, a cyber insurance executive with Marsh & McLennan Co's (MMC.N) Marsh broker unit, who said, "Some companies are struggling to find the money to buy the coverage they want”.
Retailers and health insurers have been especially hard hit by the squeeze after high-profile breaches at Home Depot Inc (HD.N), Target Corp (TGT.N), Anthem Inc (ANTM.N) and Premera Blue Cross.
(With Agency inputs)