2012 will begin a massive expansion in cyber attack insurance

This year, the world watched as many corporations – even those that are reputed to have the strongest security systems in place – experienced massive data breaches that were so extensive that their final damage total has yet to be calculated. For example, Sony experienced a tremendous breach to the personal account data stored within its network, and has yet to determine precisely how much the cyber attack has cost the company. The most recently published total was that 100 million customer accounts had been compromised, and that they predict…

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Cybersecurity a growing issue in the U.S.

According to U.S. cybersecurity analysts, 12 small groups of hackers from China are responsible for more than $1 billion worth of data from companies throughout the nation. These groups have been monitored by McAfee, a prestigious Internet security company, who drew upon information collected over time. Earlier this year, McAfee tracked intrusions into the U.S. energy grid back to China, where the hacker groups were finally identified after years of arduous investigation. Last month, U.S. intelligence officials formally rebuked China for its part in the intrusions, but no other action was…

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Financial crisis leads to greater errors and omissions claims in real estate

The errors and omissions liability coverage sector is starting to feel the pinch in the real estate industry as a result of the financial crisis. Trends and developments impact the purchasers of the different kinds of specialty insurance products, such as errors and omissions, D&O, cyber risk, employment practices liability, surplus, marine, and transportation lines. Firms for diversified financial services and banking that have advised their customers to make investments into high risk subprime mortgages or credit default swaps are now experiencing significant claims, and – according to Phil Norton…

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Zurich American takes Sony to court over data breach claims

A new court case between the Zurich American insurance company and Sony – its client – may set a precedent for future decisions made regarding an organization’s liability and coverage at the time of a data breach. The insurer has stated that it will not cover Sony’s costs for the many class-action lawsuits that have occurred following the massive database breaches it experienced earlier in 2011, and is seeking the support of the courts for its decision. Sony has already reported that it anticipates that the direct financial cost of…

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Insurance leader unveils new CyberRisk product

Travelers Bond & Financial Products has released their latest product, CyberRisk, which has been designed to minimize the cyber exposure and connected risks to their business clients.  According to the product manager of the leading insurance company, Jason Glasgow, “Cyber risks leave businesses exposed regardless of size, industry or track record.”  He explained that though organizations may put many powerful strategies into place in order to limit their exposure opportunities, there remain a large range of additional risks beyond obtaining data within a single hacker attack.  Cyber liability for a…

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Do you need cyber insurance?

How safe do you think your company is against a hacker? A current survey showed that almost 52 percent of businesses didn’t even have security guidelines regarding their IT departments. Most businesses are ill prepared to combat the ever increasing threat of cyber crime; however, there are things that can be done to lessen your risks. When a computer security organization did a survey of businesses regarding security and crime they found that a whopping 43 percent had experienced some type of internet security breach in the last year. Hackers…

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