While the words “sexy” and “insurance” seldom appear in the same sentence, cyber liability changed that in 2011.
Speaking about coverage for data-breach risk, Jake Kouns, senior director of technology and a data-privacy underwriting expert at property-and-casualty insurance holding company Markel, said in October, “It’s the new, sexy insurance. There are 30 carriers now writing it.”
Indeed, it is companies outside the Fortune 1000 that could find it very difficult to recover from a data breach without the right insurance, says Kouns, who also serves as chairman/CEO of the Open Security Foundation—a nonprofit public organization that seeks to help businesses minimize their information-security risks.
While cyber coverage has moved from an afterthought to a front-burner issue for many risk managers this year, the types of coverages being offered are still all over the map. Policies can cover everything from helping reconstitute data to the public-relations expenses needed to repair a damaged reputation.