Cyber Coverage – Who is buying, sub-limits and the global market

From the 2014 Cyber Liability Symposium session “What is the ‘Best’ Cyber Policy,”, Graeme Newman of CFC Underwriting and moderator Chris Christian, RPLU of U.S. Risk Brokers discuss the evolving marketplace for cyber coverage, including sub-limiting, first party exposures, differences in coverage needs globally and who is buying coverage at present.

For much more discussion and opinion on Cyber Liability coverage don’t miss the 2014 PLUS Conference, November 5-7 in Las Vegas. Cyber-focused sessions will address cyber exposures for directors and officers, the international cyber market, a data breach walk-through, and the return of Cyber Speed Debates!

PLUS members can view this entire session in the PLUS Multimedia Library.

Elizabeth Kim on Privacy and Data Security for Health Care

Elizabeth Kim, Principal Underwriting Counsel, Hiscox Insurance Company and Moderator for the 2014 Medical PL Symposium session “Privacy & Data Security Risk Management for Health Care Professionals” discusses how cyber risk is different for health care professionals and looks at changes in the sector in the coming year.

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.