Soulskill from the don't-fix-it-just-insure dept.
onehitwonder writes "A recent article in The Wall Street Journal's CIO Journal argues in favor of the benefits of cyber liability insurance — policies designed to help companies cover costs they incur in the aftermath of data breaches (whether for investigation, remediation, customer notification, regulatory fines or legal settlements). Two Deloitte consultants interviewed for the article argue that cyber insurance can help companies offset the increasingly staggering costs of a data breach. (Several of the biggest data breaches in recent history, including Heartland and TJX, have cost those companies hundreds of millions of dollars. A Mizuho Investors Securities analyst estimated the total cost of the 2011 Sony data breaches at $1.25 billion.) The question is: will insurance providers really come through when companies begin filing claims on their cyber liability policies, or will they find ways out? A 2011 article from Computerworld notes that even though a growing number of companies have been purchasing cyber insurance, it's hard to find examples where one of those policies has actually covered the costs of a data breach. Moreover, the Computerworld article points out that many cyber insurance policies cover only the cost of re-creating whatever data may have been lost during the breach — not notification costs, legal costs or other related expenses."
Physician: One upon whom we set our hopes when ill and our dogs when well.
-- Ambrose Bierce