Is it better to insure than secure? Maybe not. You better dust off those old insurance policies that most of us look at all too infrequently.
Midwestern supermarket chain Schnucks has been notified by their insurance carrier that they don’t plan to cover them for the lawsuits resulting from the hacking incident in which customer’s credit card numbers were exposed in a data breach at about 80% of their stores. The unauthorized access by the hackers reportedly lasted for about four months before it was discovered.
The problem that likely exists with your current insurance policy is that they were designed and sold in a pre-Internet era. Data is not considered tangible property by the insurance companies. Loss of such assets is normally only covered by a specific cyber-insurance product.
Snuck’s has more problems than the lawsuits by customers. A card payment company and several banks are also making claims. Click HERE to read more on this at SC Security Magazine and then run over to that old-fashion filing cabinet and pull your policies to see what they say.