Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News

      Cover Your E-Assets

      By
      eWEEK EDITORS
      -
      July 16, 2001
      Share
      Facebook
      Twitter
      Linkedin

        No one expects to be hacked, of course. But companies can protect themselves — just in case the unthinkable happens.

        “Cyberinsurance” is the moniker most often applied to policies that protect against losses from such security breaches. Traditional insurance companies, including American International Group, Lloyds of London and The St. Paul Companies, are now starting to offer protection for e-business.

        “Five to 10 years from now, I think this will be a mainstream policy,” said John Farber, St. Pauls senior underwriter for cyber-risk and cyberattacks. “People are worried about it, and they are realizing standard coverages do have gaps.” In other words, your property insurance probably doesnt cover your virtual assets.

        But cyberinsurance is fairly new, and companies are only beginning to understand the risks they face. Furthermore, it may be difficult for insurance companies to quantify exactly how much financial loss is possible due to security violations. But Ty R. Sagalow, chief operating officer of AIGs e-business risk solutions, said that doesnt matter in an emerging area such as cyberinsurance.

        “Yes, its true theres not a lot of hard data, but if you wait for it, you missed the time when your clients really need you,” Sagalow said. “They need you most when they can figure out the risk the least.”

        Prices for cyberinsurance policies start at $10,000 per year and can reach into the millions of dollars, depending on the size of the company, what types of threats it wishes to be protected from and how much needs to be insured. Also, some companies can be bigger targets than others for political reasons, and underwriters will factor that into the premium as well.

        In some cases, there are no precedents in the offline world for cyberinsurance coverage. Viruses are a prime example. Several companies have filed lawsuits claiming that their e-mail was infected by another company that wasnt using proper antivirus protection, according to insurance executives, though none are known to have been successful yet.

        Businesses are also being held liable when unauthorized intruders access customer data. “If youre someone using credit cards and you dont take due diligence to protect that data, you can be held legally liable. And that legal liability is being upheld by legislation,” St. Pauls Farber said.

        There are also situations that mirror those in the offline world, but take a more extreme form online, such as business interruption. If a brick-and-mortar store burns down, it would have protection for the amount of business that the store loses while its rebuilding. People who live in the area will revisit when the rebuilding is done. An e-merchant, though, may never get a return visit from a customer, so business interruption is much more extreme.

        Before any policy is offered, AIGs Sagalow said, its important to complete a full risk assessment of the infrastructure. “Like any other insurance, its not there for irresponsible companies,” he said. “Its not there for companies that dont take reasonable steps to secure their assets.”

        eWEEK EDITORS
        eWeek editors publish top thought leaders and leading experts in emerging technology across a wide variety of Enterprise B2B sectors. Our focus is providing actionable information for today’s technology decision makers.
        Get the Free Newsletter!
        Subscribe to Daily Tech Insider for top news, trends & analysis
        This email address is invalid.
        Get the Free Newsletter!
        Subscribe to Daily Tech Insider for top news, trends & analysis
        This email address is invalid.

        MOST POPULAR ARTICLES

        Latest News

        Zeus Kerravala on Networking: Multicloud, 5G, and...

        James Maguire - December 16, 2022 0
        I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
        Read more
        Applications

        Datadog President Amit Agarwal on Trends in...

        James Maguire - November 11, 2022 0
        I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
        Read more
        IT Management

        Intuit’s Nhung Ho on AI for the...

        James Maguire - May 13, 2022 0
        I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
        Read more
        Applications

        Kyndryl’s Nicolas Sekkaki on Handling AI and...

        James Maguire - November 9, 2022 0
        I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
        Read more
        Cloud

        IGEL CEO Jed Ayres on Edge and...

        James Maguire - June 14, 2022 0
        I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
        Read more
        Logo

        eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

        Facebook
        Linkedin
        RSS
        Twitter
        Youtube

        Advertisers

        Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

        Advertise with Us

        Menu

        • About eWeek
        • Subscribe to our Newsletter
        • Latest News

        Our Brands

        • Privacy Policy
        • Terms
        • About
        • Contact
        • Advertise
        • Sitemap
        • California – Do Not Sell My Information

        Property of TechnologyAdvice.
        © 2022 TechnologyAdvice. All Rights Reserved

        Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

        ×