Is CGL insurance coverage tonic for the data breach blues?

“There are only two kinds of companies: those who have been breached and those who will be breached.”


Data breaches in North America are becoming alarmingly commonplace. One source estimates there have been 4,227 data breaches since 2005, compromising the security of over 864 million records in the United States alone. The threat posed by hackers is of special concern to businesses entrusted with warehousing and securing the valuable information of their customers.

The sheer size and volume of data breaches today pose a potentially significant liability risk to businesses. One incident alone can involve theft of sensitive information for millions of customers. For example, Heartland Payment Systems suffered a cyber attack in 2008 that saw the theft of credit card information for some 130 million customers. Heartland paid credit card companies $110 million in part to indemnify them for the cost of reissuing millions of credit cards.

Read the full report