Target has $100M of cyber insurance, $65M of D&O cover: Sources | Business Insurance. Target Corp., which last month had a massive data breach that exposed the credit and debit card information of some 70 million customers, has at least $100 million of cyber insurance, including self-insured retentions, and $65 million of directors and officers liability coverage, according to insurance industry sources. These well-placed sources, who requested anonymity, said Minneapolis-based Target is self-insured for the first $10 million of cyber coverage. On top of that, there's additional cyber insurance through: $15 million of excess coverage with Ace Ltd.; then a $15 million layer with American International Group Inc.; a $10 million layer with Bermuda-based Axis Capital Holdings Ltd.; another $10 million coverage layer with AIG; then a quota share for the next $40 million of cyber insurance divided among four unidentified insurers.
On Tuesday, a Target spokeswoman said in an email that the company had no additional details to share. Concerns Over Cyber Security Risks Outweigh Traditional Risks. Cyber security risks have become more worrisome to large organizations than traditional natural catastrophe risks, according to a new study. The study, titled “Managing Cyber Security as a Business Risk: Cyber Insurance in the Digital Age” and conducted by Experian Data Breach Resolution and the Ponemon Institute, reported that 41 percent of large businesses (those with 500-plus employees) believe cyber security risks are greater than other insurable business risks such as natural disasters, business interruption and fires.
Another 35 percent of respondents in the survey reported that cyber security risks are equal to other insurable business risks. Despite growing concerns over cyber security, the study also found that less than one-third of respondents (31 percent) have purchased cyber insurance coverage. The survey predicts 50 percent growth in policies purchased in the next year, with more than 100 percent growth within the next two years. Potential Cost of Breach Coverage Satisfaction. CyberSecurity by Chubb. Unfortunately, many companies don’t realize that whether they experience a data security breach isn’t as much a matter of if it will happen as when.
When a security breach happens, you’ll need comprehensive protection from an insurer that specializes in handling cyber risks, offers a full suite of integrated insurance solutions to help minimize gaps in coverage, and understands how to tailor coverage to your business. To learn more, view our CyberSecurity video: CyberSecurity by Chubb SM is a flexible insurance solution designed by cyber risk experts to address the full breadth of risks associated with doing business in today's technology-dependent world.
CyberSecurity by Chubb: Combines third-party (cyber liability) and first-party (cyber crime expense) coverages into one worldwide policy. Covers direct loss, legal liability, and consequential loss resulting from cyber security breaches. Additional InformationSearch our Forms & Applications Learn more about: Cyber Security Liability Insurance - Philadelphia Insurance Companies. 10 Reasons Why™ First and Third Party protection in a comprehensive coverage form First Party coverage includes Loss of Digital Assets, Non-Physical Business Interruption and Extra Expense, Cyber Extortion, Cyber Terrorism, and Security Event Costs Third Party coverage includes Network Security and Privacy Liability, Employee Privacy Liability, and Electronic Media Liability Covered Cause of Loss includes administrative or operational mistakes Breach of Privacy coverage - includes damages resulting from alleged violations of HIPAA, state, federal, and foreign privacy protection rules Customer Breach Notice Expense and coverage (via sub-limit) Public Relations Expense coverage Most favorable wording for punitive or exemplary damages Electronic media peril broadly defined to include infringement of domain name, copyright, trade name, slogan, service mark on the internet or intranet site Comprehensive Interruption Expenses coverage Cyber Security Liability 10 Reasons Why Learn More (Videos)
Cybersecurity Insurance Picks Up Steam, Study Finds - Risk & Compliance. A new study found that 31% of companies have cybersecurity insurance policies, while 39% planned to purchase a policy in the future. The study, released Wednesday by information services group ExperianEXPGY +0.58% plc, underscores the quick development of the nascent industry, which has picked up speed in recent years as companies wake up to a pervasive cyber threat. “There is a definite expansion of cyber insurance, and growing interest in it,” said Michael Bruemmer, vice president at Experian Data Breach Resolution.
Mr. Bruemmer said that an increasing amount of his business now comes from insurers that pay for a company’s costs incurred during a breach. According to Mr. Bruemmer, 30% of his business now comes from insurers, which marks a 50% increase over the last 18 months. Past research by the Ponemon Institute found that the average “operational” cost of data breach in the U.S. is approximately $5 million. Top Ten Tips for Companies Buying Cyber Security Insurance Coverage - Association of Corporate Counsel (ACC) Dec 20, 2012 By Kristi Singleton, Counsel, and Scott Godes, Counsel, Dickstein Shapiro LLP Companies may spend a lot of time and effort to protect their confidential data, but they may miss prime opportunities to save costs and mitigate potential losses if they focus solely on protecting information, and ignore the benefits of purchasing comprehensive cyber-security insurance coverage.One way that companies can help protect their clients, and themselves, is to understand the scope of the insurance policies that they have, and purchase comprehensive cyber-security insurance coverage.
All cyber-security insurance policies, however, are not created equal, so below are some tips that all companies should consider when purchasing or renewing a cyber-security policy. 1. Buy First-Party and Third-Party Coverage There are two general categories of risks and potential liabilities for data breaches and cyber risks: “first-party risks” and “third-party risks.” 2. 3. 4. 5. 6. 7. 8. 9. 10.