The average cost of cyber insurance for corporates in the USA has risen by 32% in the first half of this year, having been flat for most of last year. Furthermore, there is now typically a cap of $100 million in place, with higher deductibles, which means that for companies like Target, which has to foot a bill of $268 million, that it is likely out of pocket. Another factor is that some companies are being told that even with a $100 million cap in place, the first $25 million has to be paid for by the company, not the insurer. Target and Home Depot declined to comment on whether insurers had hiked rates or reduced coverage after massive breaches that exposed tens of millions of credit cards. In other words, if Target wants to pay its hackers $100,000 and get away without paying them back, then they will have to do so on their own.
The average cost of cyber insurance for corporates in the USA has risen by 32% in the first half of this year, having been flat for most of last year. Furthermore, there is now typically a cap of $100 million in place, with higher deductibles, which means that for companies like Target, which has to foot a bill of $268 million, that it is likely out of pocket. Another factor is that some companies are being told that even with a $100 million cap in place, the first $25 million has to be paid for by the company, not the insurer. In other words, if Target wants to pay its hackers $100,000 and get away without paying them back, then they will have to do so on their own.