Equifax's insurance said likely to be inadequate against breach

Though Equifax’s eventual expense may not be known for years, it could be multiples higher than the insurance payout, given what the company has disclosed and the costs at hacking victims like Yahoo and Target Corp. (Photo: Shutterstock)

(Bloomberg) – Equifax Inc.’s insurance against cyber breaches is likely inadequate to cover the credit-reporting company’s costs tied to one of the biggest hacks in history, according to people familiar with the coverage.

The company holds a policy that would probably cover about $100 million to $150 million, with costs shared by carriers in the London market and elsewhere, said the people, who asked not to be identified discussing a private contract. Though Equifax’s eventual expense may not be known for years, it could be multiples higher than the insurance payout, given what the company has disclosed and the costs at hacking victims like Yahoo and Target Corp., they said.