Security breaches at Yahoo and Equifax show the growing need for businesses to have insurance for such instances, according to a University of South Carolina finance professor and insurance expert.
Robert Hartwig told South Carolina Radio Network that cyber insurance is vital for what follows such a breach. “You possibly could be sued,” he said. “It could cover your legal costs.”
He said the insurance could also help a business cover other costs related to a security breach. “There are a lot of liabilities that result because of a cyberattack,” he said..” So, what it could protect you as a business, for instance there are going to be costs to you associated with having to provide credit monitoring for your customers who have had their confidential information hacked.”
But for all the attention the breaches at Yahoo and Equifax receivec, there are likely others about which the public knows nothing. “Those were the ones that were actually reported,” Hartwig said. “There are in fact probably millions that are not or simply the fact that businesses don’t know that they even have occurred.”
Hartwig said cyber-risks are rapidly growing,, but are increasingly an insurable risk.