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Getting Paid For Getting Hacked |
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Source: Dancho Danchev - Posted by Eric Lubow
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In the middle of February, Time Magazine ran a great article on Cyberinsurance or "Shock Absorbers", and I feel this future trend deserves a couple of comments, from the article: "As companies grow more dependent on the Internet to conduct business, they have been driving the growing demand for cyber insurance. Written premiums have climbed from $100 million in 2003 to $200 million in 2005, according to Aon Financial Services Group ...
The need for cyberinsurance has only increased as hacker move away from general mischief to targeted crimes for profit. Insurers offer two basic types of cyber insurance: first-party coverage will help companies pay for recovery after an attack or even to pay the extortion for threatened attacks, while third-party coverage helps pay legal expenses if someone sues after a security breach. Demand for insurance is also driven by laws in over twenty states that require companies to notify consumers if a breach compromises their personal data. However, prevention is still the top priority for most companies, since loss of critical data to competitors would do damage beyond the payout of any policy."
Read this full article at Dancho Danchev
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