In the wake of a massive data breach, entertainment giant Sony is turning to its insurers for help with the cost. A group of anonymous hackers overwhelmed Sony’s security late last month, stealing valuable customer information. Only two weeks after the initial attack, they struck again, getting their hands on even more data.
To date, more than 100 million users of Sony’s online gaming and market platform have been affected, causing an estimated $2 billion worth of damages.
The corporation has a multitude of insurance companies at their disposal and is trying to get help from each of them. However, these companies may end up denying payment for damages, many of whom can cite negligence as the reason behind the attack’s success. Dan Zeiler, director of security and compliance for American Internet Services, says that Sony may have failed to secure their network, giving hackers ample opportunity to exploit network weakness.
It is unlikely that Sony will be denied support from the majority of their insurers. The corporation may not be insured for the full amount of the breach, however. There are many factors contributing to the overall cost of the breach, including hiring third parties to conduct investigation into exactly how the theft happened.
“They are not going to be completely unscathed,” says Etti Baranoff, professor of insurance at the Virginia Commonwealth University. “No matter what, their insurance rates are going to go up.”
