Schnuck’s Might Be in Big Security and Insurance Trouble, Can the Same Be in Store for Your Firm?

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.

2013-08-23T22:29:26+00:00