From 2013 to 2014, spending on cyberattack insurance almost doubled to approximately $2 billion, according to a Los Angeles Times report.
Cyberattack insurance provider Beazley Group reported a 100 percent growth in number of policies from 2013 to 2014. From 2012 to 2013, Beazley Group reported a 150 percent growth in number of policies, according to the report.
Cyberattack liability providers cover breach-related costs such as patching holes in computer networks, finding cybercriminals, notifying customers, financing lawsuits, mitigating foregone business losses and financing any necessary public relations campaigns, according to the report.
Target, Home Depot and Sony, all hit with cyberattacks in 2014, all also had cyberattack liability insurance, lessening their overall out-of-pocket spending in responding to the attacks, according to the report. Anthem, the latest nationwide organization to report a cyberattack, also is covered by insurance, and financial analysts predict a “minimal” financial hit for the Indianapolis-based payer, according to the report.
Such insurance policies historically were mainly purchased by large organizations, but smaller organizations are starting to consider purchasing coverage, according to the report.
“Everyone’s swamped with new applications,” said Nick Economidis, an underwriter at Beazley Group, in the report.
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