Chubb, Others Active In Cyberattack InsuranceMarch 14, 2012 – In The News
With security breaches on the rise, companies are keeping a close eye on their insurance policies. But details related to insuring such attacks are still questionable as many details, such as risk calculation, are hard to determine.
Scott L. Vernick adds that it's important for even small businesses to up their security since cyber-attacks can threaten companies of any size.
"It's probably just as important for smaller businesses to have cyberinsurance," said Vernick.
Denial-of-service attacks, hacking, viruses and intellectual property theft can hit a smaller company harder than a larger one, he said, as they often use third-party Web hosting and information processing that can offer an entry point for crooks.
Vernick also added that companies of all sizes looking at cyberinsurance need to read the fine print carefully.
"Without knowing which risks or liabilities a policy covers, just having cyberinsurance may lull a company into a false sense of security," Vernick said.