Retailer falls victim to a major data breach that could have compromised consumer financial information
Home Depot recently announced that it had fallen victim to a data breach that may have compromised the financial information of customers visiting 2,200 of its stores located in the U.S. and Canada. The company suggests that there has not yet been any evidence that this financial information has been compromised. The attack on Home Depot again highlights the growing importance of cyber insurance. This form of insurance coverage may not be able to stop a malicious attack from happening, but it could provide a very valuable safety net for businesses that fall prey to such attacks.
Company has $105 million in cyber insurance protection
Home Depot has a total of $105 million worth of cyber insurance coverage. Approximately $10 million in primary coverage comes from the American International Group, with Zurich Insurance and Liberty Mutual also providing coverage to the company. Home Depot also has a self-insured retention of $7.5 million, as well as various other types of insurance protection.
Home Depot is taking steps to further protect itself from digital threats
The retailer has been taking aggressive steps to address the data breach issue. The company had updated its security before the data breach occurred. During the data breach, Home Depot began further improving its security solutions, but was not able to keep up with the hacker responsible for the breach. The matter is currently under investigation, with Home Depot taking steps to ensure that it is not exposed to further data breach attacks.
Cyber security is gaining more attention in the world of business
Cyber security is an important issue that is often overlooked. Many businesses are not well versed in the threats that exist in the digital space. As such, they are exposed to exploitation from malicious groups that knew how to take advantage of the lackluster security that these businesses employ. Cyber insurance can help a company recover from the impact of cyber attacks, but the insurance industry is still trying to understand how to effectively handle such attacks.