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Subject: [ISN] Got cyber insurance?
From: InfoSec News <alerts () infosecnews ! org>
Date: 2011-10-25 6:10:01
Message-ID: alpine.DEB.2.02.1110250109510.10310 () infosecnews ! org
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http://www.networkworld.com/news/2011/102411-cyber-insurance-252145.html
By Lamont Wood
Network World
October 24, 2011
Heartland Payment Systems figured it was in pretty good shape when it
took out a $30 million cyber insurance policy. Unfortunately, the credit
card transaction processor was the victim of a massive data breach in
early 2009 that resulted in losses estimated at $145 million. The
insurance company did pay Heartland the $30 million, but the company was
on the hook for the remaining $115 million.
So, is cyber insurance worth it? Is it right for your company? What type
of coverage should you get? How much is enough? And what are the gotchas
to watch out for?
The first point to understand is that standard business insurance does
not cover data breaches or almost any other loss involving data.
Standard insurance covers tangible losses and damage. Data isn't
tangible.
For that distinction you can thank American Guarantee & Liability
Insurance Co. vs. Ingram Micro Inc., a U.S. District Court ruling in
Arizona in 2000. The court said that a computer outage caused by a power
problem constituted physical damage within the meaning of the policy
Ingram Micro had purchased from American Guarantee.
[...]
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