Insureon Blog

Target's Cyber Liability Insurance Covered 36% of Its Data Breach Costs. How Much Does Yours Cover?

24. March 2015 08:25

money

You'd think that a behemoth retail chain like Target would have an insurance policy befitting its size, and before the 2013 data breach, its Cyber Insurance limits probably seemed high enough. But the figures for 2014's cleanup costs are in, and it looks like Target's policy only covered a fraction of its data breach expenses.

Here is a rundown of Target's expenses, courtesy of a report by Advisen:

Though $90 million seems like a lot of coverage, it's not much of a salve when faced with a $162 million hit to Target's bottom line. Plus, the data breach costs are still rolling in, so $252 million isn't the final count.

What's driving these costs? You may have heard that several banks are suing Target over the cost of replacing customer credit cards, but that's just the start of Target's money hemorrhage. Other costs stem from:

Target's Cyber Insurance can help cover these costs, but the policy's limits aren't high enough to bear the majority of the costs. The good news is that Target's misfortune can be a learning opportunity for your business. Let's take a look at some ways you can ensure your Cyber Liability Insurance policy's limits are appropriate for your risk.

Choosing Adequate Insurance Limits: How High Is Too High?

As we discussed in the post "Anthem's Data Breach Reminds Us Why Insurance Coverage Limits Matter," your best bet for getting adequate insurance coverage is to work with an insurance agent. And that's not our bias talking. An experienced insurance agent can help you…

To learn more about how agents are the bee's knees when it comes to all things insurance, read the post "How an Insurance Agent Can Help Small Business Cut Insurance Costs."

Tags:

Cyber Risk Insurance | Data Breach | Insurance News | Risk Management | Small Business | Small Business Risk Management | Tips for All Small Businesses

Permalink | Comments (0)