RealNews

Firms' Hacking-related Insurance Costs Soar

Computer worms and viruses cost companies time and cleanup costs — and now higher insurance premiums. Many insurance companies — overwhelmed with hacking-related claims the past two years — have sliced hacking losses from general-liability policies, forcing companies to spend extra for “network risk insurance,” which costs about $5,000 to $30,000 a year for $1 million in coverage. “Insurers are delivering an ultimatum: Invest in stand-alone hacker policies or go unprotected,” says corporate attorney Bob Steinberg. That’s a dangerous proposition. Losses from computer crime are expected to soar 25% to $2.8 billion in the USA this year, says market researcher TruSecure. Successful Web-site attacks nearly doubled to 600 a day. Hacker insurance is expected to jump from a $100 million market today to $900 million by 2005, market researcher Gartner says. That may result in higher costs for consumers as the cost of doing business goes up. Full Story

OODA Analyst

OODA Analyst

OODA is comprised of a unique team of international experts capable of providing advanced intelligence and analysis, strategy and planning support, risk and threat management, training, decision support, crisis response, and security services to global corporations and governments.