The Target Breach and Cyber Insurance

On Wednesday Reuters published an article on the Target Data Breach that included a look at how cyber liability insurance may help defray some of the breach expenses. From the article:

Target said of the $61 million in expenses related to the breach during the quarter, $44 million were offset by an insurance payment, bringing the impact to $17 million.

Mark Rasch, a former cyber crimes prosecutor who worked on some of the biggest U.S. payment card breach cases, said that it was too early to estimate how big the bill would be, but it would certainly be in the hundreds of millions of dollars and could top $1 billion. “We know it is going to be big. We just don’t know how big,” he said.

Target has declined to discuss exactly what sorts of costs its cyber insurance will cover or identify its insurers.

Insurers offer cyber policies that cover costs for items such as investigating breaches and repairing networks, compensating credit card issuers for fraudulent activity, fighting lawsuits and responding to regulatory probes.

Target said breach-related expenses may include costs for reissuing cards, lawsuits, government probes and enforcement proceedings, legal expenses, investigative and consulting fees, and capital investments.

Where do you see the “final” cost to Target being once all expenses related to this breach are calculated? What impact will this breach have on the overall cyber liability insurance market going forward? Share your thoughts in the comments below, and make sure to attend the 2014 PLUS Cyber Liability Symposium for more discussion and networking with the key players in this growing industry segment.

The Plaintiff Who Knew Too Much – A Multimedia Experience

In this unique webinar, airing live on September 24, 2013, a panel of industry experts explores how Lawyers and other professionals have increasingly embraced 21st Century technologies without considering the potential impact it might have on their professional and ethical duties to clients. Using a fun overlay of a fictitious managing partner who must solve the mystery of how an adversary knows confidential, strategic information about a big case, our presenters provide substantive discussion of a variety of potential scenarios that could lead to the loss of confidential information, the tensions between attorney-client obligations and law firm employee rights and insurance implications should claims arise as a result of a misdirected email or a purloined iPad. These and other potential technology exposures for the unwary professional are explored as our hapless managing partner’s investigations teach him about the real life technology habits of his attorneys and staff.

Watch the entire webinar below – it is unlike anything you’ve ever seen.