Sony Pictures was rocked by a major cyber attack last year
Last year, Sony Pictures was the victim of a major cyber attack that has been called the most destructive event of its kind on a U.S. company. The attack saw a massive amount of personal information exposed to the public, including information concerning the company’s production schedule and the information of millions of consumers. The attack was blamed on hackers in North Korea, and the event was tentatively tied to the release of the movie “The Interview,” which Sony had initially canceled due to political concerns.
CEO claims that cyber attack will not be a major setback for the company
Michael Lynton, CEO of Sony Pictures, claims that the attack was similar to someone breaking into a home and burning it to the ground. Lynton does not, however, that the event will not set the company back in any significant way. According to Lynton, the cost of the attack is not as high as the media may be suggesting. The company’s budget is not expected to be disrupted by the attack, largely due to the fact that it has cyber insurance coverage.
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Cyber insurance has helped Sony keep its deadlines and payroll obligations
Some security experts had estimated that the cost of the cyber attack would be as high as $100 million, which would include Sony adopting measures to prevent future attacks. The majority of these costs are expected to be handled by the company’s cyber insurance protection. This protection may have been quite extensive, as the company has not failed to meet any production or payroll deadlines since the cyber attack in November of last year.
Protection against cyber attacks is becoming more important for businesses in exposed industries
Cyber insurance is becoming more important, especially as attacks are carried out against large companies like Sony Pictures more frequently. This type of coverage can help a company recover from the massive losses it can see in the wake of a major cyber attack, and can even cover the costs associated with public relations.